Early settlement modification

[rhian242]

I have received confirmation that an early settlement of my IVA has been accepted today by Creditfix however the documentation contains this modification "The trust will not be deemed broken upon receipt of the final payment into the arrangement and any funds liable to be paid into the IVA will still remain due upon acceptance of the variation proposed." I am not clear what this actually means? Could anyone help? Thank you

[Foggy]

This is for PPI and similar payments that might be outstanding.

A recent court case confirmed that the trust created by the IVA remains in place even after the IVA is completed. This means that if any monies are discovered that were due to the IVA, like PPI, in the future, it has to be paid to the IVA trust.

[rhian242]

Thank you for that response. Is that indefinite? Or does it simply refer to the original timeframe of the IVA?

And if that is the case, would we be looking at the original timeframe when the IVA was first agreed or the extended IVA end date due to payment breaks? Thank you for any guidance.

[Foggy]

In the case of PPI they will capture any PPI that was taken out prior to the IVA and up to it's formal completion date ( although you wouldn't have been able to take any new credit, therefore PPI, during the IVA ). This applies whether it comes to light now, or in 10 years time (if the Ombudsman ever re-opens claims).

In the case of other monies, like windfalls, which might have been due to the IVA they are looking at, for instance, inheritances where the benefactor died during, or prior to, the IVA.

The IVA is deemed to be in force from the date of the initial creditors meeting where it was accepted until the date of issue of the completion notice. The trust created by the IVA lasts, apparently, in perpetuity.