Sorry Daniel - I simply don't follow your logic here. The PPI claim is not available to the debtor - it is an asset held in trust for the IVA creditors.
Do you actually understand the role of an insolvency practitioner and what has to be done in realising assets for the state. As a heavy advocator of bankruptcy proceedings, you will know that the role of a Trustee in bankruptcy is no different - and if by "picking in the bones dry" as you eloquently describe us carrying out our statutory duties means that the IVA could ultimately be saved, I would have thought that the PPI process was an excellent tool for both IP and debtor to avail of to be frank.
The IVA has failed, have I read that wrong, all but the issuing of the termination certificate,in my book that means not a penny more PPI, payments of any kind, or anything else need to be paid into it, as for understanding the role of supervisor I am not going to bother answering that one
If the IVA is current then obviously everything possible needs to be done by the debtor to ensure its success if the agents about to descend on his home who are possibly unpaid volunteers motivated in seeking justice to the creditors can save the IVA by doing so great news for the debtor,
My logic is if the debtor is now faced with bankruptcy, and the IVA is failing I would firmly close the door to any further supervisor requests and uttilise any remaining assets monies I had, PPI or otherwise to solve my debt problem.
Why do you feel that the IVA trust ends with the failure of the case Daniel? The assets are held in trust, and the Supervisor is the beneficiary of the trust. The trust does not break in the event that the IVA fails - so why are you advising that people in the position of suffering from a failed IVA can pursue PPI without regard to the IVA trust?
Hi Melanie
This is a great thread, I and I am contributing to it in the knowledge that you are the Master and I am the humble student, but I am troubled with a couple of things,
The first is the motivation of the client to allow strangers in his home to go through paperwork to search for opportunities to claim compensation for miss sold PPI, Now keeping in mind the IVA has failed I understand that monies cannot be collected in payments anymore because the clients are finished, stony broke and they are losing their home. However there is still an opportunity to earn some fees here in comissions to the supervisor and the Claims management companies and you never know its slightly possible the Creditors may have a sniff at something. Can we agree that the client no way whatsoever has to now co-operate with the IVA failing in letting anyone go through his paperwork inside his home, mind you it would give them an opportunity to look down his chairs as over the years much change accumulates sometimes without knowing.
Now this trust this IVA trust, if PPI, is ever paid out is it paid out to the client or does it go straight to the IVA supervisor, because if its the latter then the client has no access to it. If it is paid directly to the client and he uses it to pay lets say his bankruptcy costs and leaves the rest in his account what would happen next, what offence would have been committed and what would be the outcome.
I have to say that on a personal level if I was in the situation of my iva pending failure, I would not give up any of my precious spare time to allow complete strangers into my home to go through the nitty gritty of my credit file to establish ppi claims that could still be due to the iva. I see what Mel is saying, but my argument is the ip and claims management company's time is being paid for undertaking this, mine would not be, so as far as I would be concerned, they could investigate it all they like but I would not be giving up any of my unpaid time to help in this situation.
I think this just goes to show the difference in which IP's are viewed. Some seem really customer focused and care about their clients whereas, from some of the the stories on here, some appear to act as if they are just in it for the fees. I'm sure they are not but they need to communicate this to people better. Being in a IVA makes you feel vulnerable enough without people visiting before giving a full explanation why they are visiting.
I fail to understand the need for people to intrude on your privacy to investigate PPI. I`m surprised this type of thing still happens. Surely a signature giving authorisation to pursue the investigatins is all that`s required?
The clients of the IP are not the debtors, the clients are the creditors, all IPs are legally bound to maximise returns to creditors, that is how an Insolvency is supervised, the IP acts the same as the official receiver in bankruptcy. The trust that Melanie spoke of which are the monies the assets collected includes outstanding assets yet to be realised, will include this outstanding PPI. Now my point is that the duty of the debtor in a failed IVA arrangement is as I see it to himself and his family. Of course if he wants to open his doors and allow companies into his home to rifle through his paperwork like Equity in Finance, who have really cleaned up here at the expense of the banks at the expense of all of us then so be it, they are only after the last drop of blood which is the supervisors duty to do so, the supervisor is only doing their job, what I am saying to the client you are no longer obligated to assist in that job why should you watch the smiling salesman waving bye bye going down the road in his German car when are almost homeless. So I said if you still have anything, use what you have or what you can still get, to pay to petition for bankruptcy ONLY if bankruptcy is what you are now thinking of at least unlike your IVA the bankruptcy will not fail.
I understand the IP's legal responsibilities and I can see where you are coming from. My point is more about the fact that all IP's should act with courtesy and understanding to the debtor. And of course, ensure that the debtor is fully informed.
My point is that OK the IP has a duty to investigate PPI for the benefit of creditors, but a home visit is unnecessary and I can well imagine people feeling unhappy about that type of intrusion when all that`s needed is a few signatures.
I think sometimes IPs forget about treating clients with the respect they would expect themselves.
Personally speaking, regardless of whether my IVA had failed or not, I would not allow anyone into my home to investigate PPI. I would find it intrusive and an invasion of my privacy. I would be happy to complete the paperwork and post it off but any 'visitors' would be left on the doorstep.
