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Posted: Wed Jul 09, 2008 9:45 am
by rod.f
One of my customers entered into an IVA in February 2008 with creditors totalling £450,000. The IVA was approved. Despite the customer knowing of my debt of £480, I was not included in the IVA. The IVA has subsequently been ended and my customer discharged from all liabilities as his main source of equity - his property - has since fallen in value below the level of his mortgage debt.
Not knowing about existence of the IVA, I had already commenced procedings in the Small Claims Section of the County Court. My question is, am I still permitted to proceed with my claim? I was told that, despite not being included in the IVA, my debt is also cancelled. Is this true?
Posted: Wed Jul 09, 2008 10:04 am
by Blair Endersby
If your debt was due before the IVA was accepted then you are bound by the terms of the IVA provided the IVA was commenced since 2001.
The proposals should address how you are to be treated but is usual that you will be entitled to claim the dividend you would have got had you been notified. You have 28 days to appeal to court from becomeing aware of the IVA if you believe that the IVA prejudices your interest.
Contact the IP and ask them what you are entitled to.
Posted: Wed Jul 09, 2008 10:04 am
by pbeck
I presume although you don't say it that your customer's IVA has failed ? A debtor would only be discharged from their debts if the IVA had concluded successfully and even then this would not bind someone who had not been given notice of the IVA if they did not subsequently take part in it and recevie the same dividends as the existing IVA creditors.
If the IVA fails then all the customer's debts are resurrected and he again becomes liable for them. Who was it who told you that your debt had been cancelled ?
If you continue with this matter, do you actually expect to get any money out of him, and is it worth your day in Court ?
Posted: Wed Jul 09, 2008 12:50 pm
by Lisa2009
Would legal fees and a day in court not cost you more than the debt is ctually worth??
Posted: Wed Jul 09, 2008 9:37 pm
by Adam Davies
Hi
If you were not included in the original IVA proposal and had no notification of the final dividend payment then my view is that the debt should still valid.
However as the professional experts have stated it looks as if your debt will be included in the IVA and the best you can expect is a share of the pot
Regards