My friend owes me £4,500. Nothing in writing. The agreement was that she pays me back on the sale of her property which is now being sold. She is refusing to pay me back and is going to take out an IVA for other debts she has. a) can my debt be included in the IVA and b) if not how can I get my money back. This was an agreement made 5 years ago.
Yes it can, you need to find out who her IP is and make a claim on the IVA. If she refuses to tell you who her IP id you will have to wait until she is in it and then look through the Inconstancy register to get this information. I would write her a formal letter, now, stating your claim to the funds she owes you. Ask for immediate payment and outline the total amount of debt owed and any other information you can. Send it recorded and signature required, keep a hard copy that you can then subsequently give to her IP with the proof of sending it to her. If she does enter an IVA then you will only be entitled to the agreed dividend and will not see the full amount.
Last Payment made 04/12/14. Completion Certificate 25/7/15. IVA company GT. No Issues
There is, of course, the hurdle of proving your claim and her acknowledging it -- have you anything at all in writing (emails / texts discussimng it) ? There is also the possibility of the "professional" creditors declaring you an associate creditor and barring you from taking a dividend.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014 http://foggy.blogs.iva.co.uk