www.iva.co.uk

This was going to be a happy optimistic post about how I'd made my last payment & was looking forward to getting on with life after an Iva with all the lessons I'd learned over the last 60 months. But alas Freeman Jones have slapped me found the face with a wet fish.
They've recently identified an additional creditor account currently being dealt with by Cabot Financial previously RBS that does not appear to be included within your Iva. The total balance as of 21/10/2011 is £3,355.96. Freeman Jones are providing me with 30 days notice to object to it being added to my Iva.
If I'd known about this 5 years ago, I would've included it. What are the likely outcomes if I object to it being included now? What if I allow it to be included? Would my Iva be extended? Would creditors get a smaller dividend & it ends now? This debt would be pre Iva.

Sorry to hear about the wet fish slap ... that is so unfair ! Have you spoken to fj and asked them.opinion, afterall they are working for you too and should support you in this.
My understanding is if you add a creditor to your iva then all other creditors will receive a lower dividend.
Interested to see how this is resolved so please keep us updated

That is so bad!! You need to speak to FJ about this.

Hopefully either Lisa or Michael will be along to help tomorrow

It all depends upon the relative figures -- if the inclusion of the "new" debt reduces the dividend significantly the creditors will have to be consulted.

I really feel that it is incumbent on FJ to explain the position fully rather than to ask you to blindly respond -- this is poor service from your IP.

This does seem a bit strange that you are not aware of the debt and the creditor has not been in contact with you. You should speak with FJ and make sure that it is your debt and also that it is not already included within the IVA under a different name.

There is also a possibility that the debt is statute barred so I would not just accept the inclusion of the debt which could result in an extension.

Dear Dave.12,

It sounds like you’ve received a letter advising you of an additional debt. Basically, the letter is to let you know that an additional creditor has been identified and will automatically be added, and bound, to your IVA. The objection request is if you believe this is incorrect and don’t recognise the debt, therefore believe it's not something you owe and shouldn’t be included in your IVA.

To clarify, this debt will be bound by the terms of your IVA and we are not asking you to pay it, we're trying to clarify if this is your debt.

I’m sorry if this has not been made clear and would like to arrange for one of the team here at Freeman Jones to call you and explain the process in more detail, to help put your mind at ease.

Please email me directly at Steven.Hewitt@FreemanJones.com so I can arrange this for you.

I look forward to hearing from you soon.

Regards

Hi Dave.12,

Do you recognise the debt as being yours and owed to RBS before Cabot bought it off them?

If you don`t there`s every chance it isn`t your debt as Cabot are renowned for chasing people and trying to extract money out of them for debts that are not theirs, or statute barred, etc..., if you do an internet search on Cabot Financial you will find a number of stories about them and their `antics`.

Per Steven's reply they are just trying to establish whether they should accept the claim for dividend purposes or see if you know of any reason why it should be rejected.

That would be great Steven I've emailed you my details

Thanks for all the responses it was always my intention to speak to FJ just needed some advice on how to approach any dialogue regarding this hiccup. After digesting all the information lim coming to the conclusion that Cabot having bought the debt are hoping I'll agree to it being mine, they will probably be unable to provide a credit agreement between RBS & myself. I've not had any contact with RBS regarding any debt in the last 15 years since I split with my ex wife, so i'd believe any such debt would be statute barred. One of the things I've learned over the last 5 years is don't accept anything blindly. Even if it's difficult, there's always people here to advise & support you.

Sounds very much like a fishing exercise on a debt that is in all honesty statute barred.

Onwards and upwards.

Paul

Sounds statute barred to me too even if you did sign any agreement. If the debt is allowed it could lead to an extension of your IVA to achieve the dividend for creditors and this would be unfair if the debt is statute barred.

Hopefully FJ can help resolve this for you and there are no unnecessary delays to closure.

I had chat with FJ about this & the debt may or not have been statute barred it would always have been there possibly rearing its ugly head & causing stress in the future. I asked if my IVA would extended if I agreed to allow the debt to be added, the answer was no, as the dividend expected at the start of my IVA would still be met & surpassed, & that once I'd provided my October wage slip they would happily complete my final report & send out my CC. I couldn't look that gift horse in the mouth. So I agreed to let it be added.

Make sure you have that conversation in writing noting the name and date / time of it. Its a great outcome for you and hope it all comes through for you.

That's good news Dave - let us know how things pan out.