www.iva.co.uk

Hi, I realise this is a grey area but I'd appreciate some advice. My husband and I were discharged from our Iva's a year ago. We have received our certificates and as we paid in to it for 6 years, we have been removed from the register. Ppi reclaim was not included in the terms of our Iva's. So we have started a claim and a few have been upheld, only one in particular is sayin the fund will be paid into the iva. How can this be? It's closed, discharged, is there even a way of actually paying into something that's closed? I just need to know where I stand. Many thanks

Also, if I had 5 loans with Barclays, 4 of which were paid in full and only the final 5th loan was included in the iva, then does any ppi refund for the first 4 loans legally come to me?

HI. You are correct .. it IS a grey area ! If, as it seems to be, PPI is deemed an asset of the IVA (it was there, albeit not known about, during your IVA), it is generally accepted ( not tested in court) that the PPI should be paid into the IVA, regardless of which loans it is from.

Some IP's are actively following such things up when made aware of them, some feel it uneconomical to open old files and leave alone.

Not grey - pretty clear in the black and white of your proposal documents. If they provided that all of your assets, apart from those which were specifically excluded, then the PPI monies need to be paid to your former Supervisor for ongoing repatriation to your former creditors. If you did not have these provisions, then your former IP will want to understand why the claims (or potential for same) were not disclosed at the time the IVA proposals were drafted - and you may have legitimately not known at that stage whether you were entitled to make such claims.

With my own clients who are facing such issues, I am taking what I feel is a sensible approach, to split the proceeds on a 50/50 basis between the IVA creditors and myself. Of course this can only be done with my client's full agreement, and knowledge that out of their 50% share they have to account to H M Revenue & Customs for income tax payable on the interest element of the claim. I feel that this is a fair outcome, for those cases which have defined assets rather than all asset clauses.