Secured loan in an IVA

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elizabeth333

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Post by elizabeth333 » Thu Jun 28, 2018 10:20 am
I started an IVA in 2010 following huge build up of debt and subsequent voluntary repossession of my home which also had a secured loan on it. The original IVA paperwork clearly included the secured debt and gave dividend of 26p/£ on completion. I have just received my final report following completion of the IVA and the secured loan isn't mentioned at all, final dividend for the IVA is 76p/£ for unsecured debt only. I entered into this IVA thinking that this was included and I'm now concerned that I may be still chased for this secured loan amount even though I thought I had been paying it off all these years! I feel as though I have been paying 3 x as much for the unsecured debt and may still have to pay the further secured loan amount back! Can you help / advise please?

Foggy

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Post by Foggy » Thu Jun 28, 2018 10:29 am
The loan would have become unsecured after the repossession and the shortfall only included in the IVA. Secured loans do not get paid within an IVA.
Speak to your IP and get this clarified.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
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Lisa Thomas

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Post by Lisa Thomas » Thu Jun 28, 2018 10:32 am
The shortfall due to the bank following the repossession will rank as an unsecured creditor in the #IVA
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk

elizabeth333

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Post by elizabeth333 » Thu Jun 28, 2018 12:10 pm
Lisa Thomas wrote:
The shortfall due to the bank following the repossession will rank as an unsecured creditor in the #IVA
Hmmm.... contradicting information.
The IVA was granted while the repossession was taking place and was only sold after the IVA was already running.
I've read that the secured loan becomes unsecured as there's nothing to secure it on. I know the creditor in question was allowed to vote at the meeting but didn't.
So am I liable for 6 years or 12 years??

Lisa Thomas

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Post by Lisa Thomas » Thu Jun 28, 2018 12:14 pm
Regardless of the date the property was repossessed, the debt is unsecured and will rank as a creditor in your IVA as they will have been a contingent creditor at the time the IVA was proposed (Albeit they would have been contingent and would likely not have voted as at the time they would have been a secured creditor). Your Supervisor should ask them to submit a claim for dividend purposes.
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk

elizabeth333

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Post by elizabeth333 » Thu Jun 28, 2018 12:20 pm
Lisa Thomas wrote:
Regardless of the date the property was repossessed, the debt is unsecured and will rank as a creditor in your IVA as they will have been a contingent creditor at the time the IVA was proposed (Albeit they would have been contingent and would likely not have voted as at the time they would have been a secured creditor). Your Supervisor should ask them to submit a claim for dividend purposes.
OK, thanks, I'll double check all my annual reports.
I've questioned this in the past with the IP and been told it is included but I just have this niggle that it's going to come back and bite me.

elizabeth333

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Post by elizabeth333 » Thu Jun 28, 2018 1:04 pm
It seems they didn't claim in time or at all.
The annual reports show the full debt amount as unsecured so should all be OK.
Thanks
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