www.iva.co.uk

Hello,

I need a bit of advice regarding my completed IVA. I made my final IVA payment in September 2011 and received a letter from RMS Tenon stating that the terms and conditions of my IVA had been met, to stop any more payments into my IVA and that they were in the process of closing my IVA. In February 2012 I made a PPI claim and was awarded £6000. £4,500 of this was paid to RMS Tenon, as unknown to me my IVA was still open. My IVA was officially closed in October 2012 as a result of the VAT dispute. My question is should RMS Tenon have include the £4500 I obtained from my PPI six months after I had made my final payment? As far as I am concerned, my IVA should have been closed by the time I made my PPI claim and it is only due to the VAT dispute that it was not.

Many thanks for any advice

It depends on the terms of your IVA, unfortunately your IVA was still open and until you get the completion certificate any windfalls or assets that become realised can still be taken, PPI is an asset and it can also be argued that even after closure PPI could still be captured as it was an asset that existed at the time of the IVA even if it was not realised until after it's completion

hi christopher,cp

there is much debate about situations similar to yours, however whilst im not an expert, i have been reading the forum daily for a couple of years and think im correct in saying that until you recieve your completion certificate, then its deemed that any such monies need to be paid into your IVA.

as i say im in now ay an expert, but im sure one of the forum experts will respond

It is highly likely that your former IP has acted correctly in keeping the PPI monies and distributing these to creditors, but if you are in any doubt I would recommend that you seek independent legal advice.

What are the rules about windfalls after IVA payments are finished but completion certificate not received. This must be becoming an issue with it taking so long for closure to happen?

PPI claims are not windfalls - they are assets which existed at the time you entered into the IVA, as the timing of the entitlement goes back to the time the policy was sold.

Thanks Melanie, I was thinking more of something like a lottery win or a pension lump sum. Something subsequent to finishing payments?

I was wondering if part of the reason for taking so long to close and give a completion cert is that any windfalls during the waiting period can then be taken by the IP? it must be an incentive not to close quickly.

I have a feeling that Mel has sought advice on this and any 'windfalls', are ignored after you have fulfilled your obligation to the IVA.

It would be good to know the answer as I think I face a long wait for my certificate although payments are finished and I have elderly parents and do the lottery lol

It is, I am afraid, a pretty grey area - but my own lawyer (who is tremendously respected within the insolvency community) advises that an IP ought not to call for a windfall once the debtor has completed all of their obligations under the arragement. If an IP were to call for this, and it was challenged at Court, the belief is that the Judge would side very much with the debtor and the IP might be sent away with their tails between their legs - but as with all things, individual cases throw up individual issues.

This is another thing that we are seeking clarity and guidance on as a profession.

Thanks for that Mel - common sense in my view! [:)]

Thanks for the reply Mel. You are a great help. Thanks you also Kazza. just a shame this closure business takes so long.

No problem - it is what I am here to do at the end of the day.