www.iva.co.uk

Hello, I currently am in an IVA with Phillip Allen. Everything is going fine and i have 3 months left to go to have completed my 5 years.

After seeing all these PPI adverts I put in a claim to barclays. I only ever had PPI prior to my IVA. All barclays loans were completed 2 years prior to entering an IVA, therefore were never part of my agreement. I have never defaulted with Barclays.

Barclays approved my PPI claim and have awarded £2000. The later states that this will be forwarded to my IP.

How can this be as this is was a loan completed? I can understand this being a windfall and Mr Allen being entitled to 50%.

After speaking with DebtLifeboat, they instructed me to read

http://www.bis.gov.uk/insolvency/news/n ... bankruptcy

I dont see how this applies as i didnt enter into a Bankruptcy and i have no official receiver. This is a contractual agreement with my creditors that has no mention of this within it.

The PPI monies, no matter when they were accrued are an asset of the IVA --- if you had claimed this PPI immediately prior to your IVA and the money was sat in a bank account -- there is every chance that the creditors would have required you to hand it over then.

Say, for instance, you had ownership of a Picasso painting -- the creditors would expect you to realise this asset and pay it over --- you could not make the arguement that the painting was created prior to your IVA, or that you had acquired it years ago --- it IS an asset.

Unlikely example I know ......

The PPI claims you refer to were assets which belonged to you at the time your IVA was taken out - the claims are deemed to belong to you at the time the policies were originally sold, and regardless of whether the original loans which carried the policies were repaid prior to you entering into the IVA, they may still belong to the IVA creditors.

You do need to check whether your own IVA proposal included "all-assets". Your IP ought to be able to show you whether this provision exists, if it is not immediately obvious from the documents you have to hand.

Hi Melanie. So if the proposal states that 'assets not included in this proposal is excluded from the arrangement', would it allow the debtor to keep their PPI? x

Well in those circumstances, the claim would not form part of the IVA and the Supervisor would be unable to claim it. It could then be used as a tool to offer a full and final settlement perhaps.

Thanks Melanie. That's one of the reasons you keep advising posters to check their agreements I suppose! x

Of course. It is vitally important that this money is eventually repatriated to the rightful owner.

If it was considered a windfall I think Debt Life boat would be entitled to 100% - could be wrong but that's the way I understand it.

It cannot be considered to be a windfall - or an after-acquired asset - assuming the policy was sold prior to the IVA and not subsequent to it.

Just spoken to debt lifeboat who say this is a after-aquired-asset and will be treated as a windfall and made available to creditors.

how annoying

Me - confused.com! x

My own legal advice is that mis-sold PPI claims cannot be treated as windfalls - they are assets which exist at the time the IVA is accepted and therefore may or may not be claimed for the benefit of the estate, depending on the actual description of which assets are and are not included.

Anyone who is confused about this, should seek their own independent legal advice. Mine comes from a very leading Counsel who specialises in insolvency matters, and who spoke on this very subject to a number of IP firms at the R3 conference last week.

I, along with the other trade associations and my regulatory body, will shortly be meeting to try and get some form of general guidance notes out to all IPs who are engaged in the handling of IVAs. Hopefully this will serve to remove a lot of the confusion and different interpretations which are currently in operation.

Mel, what if your proposal doesn't have any mention of ppi?

The only clause i can find is:

After-acquired Assets
If prior to the completion of the Arrangement the Debtor shall become possessed of or receive assets or property (of what nature) which are not included in the proposal

a. The existance of which was not of could no reasonbly be known or envisaged at the date of the creditors approval of the arrangement

On the proposal it mentions asssets regarding furniture in my rented accomadation and "all physical refered to above are to be excluded from the arrangement"

Still not convinced 100% exactly who gets the moneny