www.iva.co.uk

i have just recieved my yearly review for my iva and 1 of my creditors as yet to stake a claim this is my 4th year now could anybody tell me what happens if they dont claim because these are my biggest debt on the iva. many thanks

Hi,

I think that if any of your creditors don't put in a claim, then the money is distributed amongst the others so they get a bigger dividend.

So it is possible that if a major creditor neglected to claim you could end up with a refund if the rest were paid in full-[:D]

That I don't know.

I am sure that Melanie or David will be along later and explain it properly.

The reason I ask is that the big one for me (65K worth) are the most incompetent bunch I have come across

Hi
Yes it is possible as the maximum that can be paid out is he original debt plus IP fees.
Who is the creditor that has not claimed ?
Regards

You might get a refund, but I would have thought that your IP would be chasing the creditor to submit their claim. Is this a mortgage shortfall perhaps?

Most Protocol compliant IVA's now have a standard condition attached that will allow the Supervisor to exclude any creditor from dividends if they have not "proved their debt" within a proscribed timeframe. The older pre Feb 2008 IVA's in the main were governed by the R3 Standard Terms and Conditions.The Supervisor would give notice and after a time (usually 21 days) if no claim submitted then the creditor would not receive any payment and the "extra" could be given to all other proving creditors.

It does seem strange that some companies don't put in a claim - do the professionals have any experience of this happening?

I also wonder, if it does happen, if the creditors decide to chase the debt again afterwards? I know they can do nothing about it, but just curious.

We have excluded and so far not heard anything from them nor has any relevant debtor as far as I am aware.

It is not uncommon for creditors not to claim in an IVA - some for commercial reasons and others will have written the debts off and cannot be bothered to pull their files out of archive. In my experience this happens more with trade creditors than banks or financial lending institutions.