I’ve been in my Iva now nearly three years and 5 creditors are still awaiting a claim , does this mean I will be liable for these debts at the end ? Feeling quite anxious as don’t get any proper answers when I contact them.
In short, no. An IVA binds all unsecured creditors regardless of whether they voted, participated, or received dividends. Your debt with them should be wiped at the end of the arrangement, however if they've been unresponsive thus far you might potentially have credit file issues if they don't report correctly.
Towards the end of your IVA your IP should be chasing any outstanding claims, though. Who are the creditors in question? Some are more responsive than others.
Hi! I used to work for one of the UK's biggest Insolvency Practitioners - I don't work for an IP anymore but still have an extensive knowledge of the IVA industry. How can I help?
As long as those 5 creditors have been included in your IVA they will be bound by it.
How do you know they are still awaiting a claim?
They will only get dribs and drabs from the IVA provider over the course of the term. At the end of the arrangement after equity has been sorted (if that applies to you) they will get their cut of the money youve paid in.
So as long as those creditors are included in your IVA you are protected and shouldnt worry.
Just pay what you are required to pay and handover any overtime windfalls etc as per your terms and let the IP sort out the creditors.
I would check your credit file to see if they are still defaulting you. It won't matter too much at the moment but it is an idea to contact them and ask them to remove any dates after the start of the IVA.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I can only echo the words given above. Some creditors do not engage at all during an IVA, but are still bound by it as long as the debt to them is included in the schedule od creditors.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
As said above I think this is pretty common and nothing to worry about. There were 15 creditors included in my IVA of which only 3 voted at the beggining and then only 10 went on to make a claim, it seems some organisations cannot be bothered with it.
