Creditor wrongly acknowledged debt and entered IVA

jaimebriggs

Hi - hoping someone can help.

I have just found out that one of my creditors (fiat finance) under my IVA - are actually a debt in my mothers name and therefore should NEVER have been on my IVA.
Unfortunately they have now asked for the £2300 owed by my mother (actually me as mum took agreement out for me) to be paid in full and immediately. Is there any loophole here Fiat knowingly and willingly agreed to enter my IVA when the accoutn with FIAT wasn't even in my name? Have we a case to argue this to help my mum as she is struggling to pay her mortgage at the moemtn and cant afford the extra payments and nor can I??!?!?!

HELP

spenderblender

jaimebrigs I would contact your IP as they should never have included them in your IVA and are at fault I would have thought.

ghostmadlittlemiss

On your other thread, you claimed your mother was a guarantor, now you say the debt was in her name. Which of those statements is true?
Kayleigh

MIVAA

It is clear that you have confused yourself (& us) here.

Assuming this agreement with Fiat is an unsecured loan, and not an HP agreement (i.e. a secured debt) then...

a) If the agreement is in your name, and you stopped paying the monthly contributions because you entered your IVA, then that's normal procedure.

b) If the agreement is in your name, but your mum stood as a guarantor, then when you entered into your IVA and were told to stop paying, Fiat would be within their rights to call on the guarantee she gave, and ask her for the full balance. They may be prepared to accept monthly contributions instead, and it would be worth asking them if that is the case.

c) If the agreement is in your mum's name, even though she signed the agreement for you, she should not have stopped paying it, as in doing so she was defaulting on her agreement with Fiat. Your debts and therefore your IVA have no bearing on your mum and her obligation to maintain all debts in her name, even if those debts were taken on for you. As a result your mum will need to deal with the Fiat debt without your assistance, as you are already committed to your IVA.


If the agreement with Fiat is an HP agreement, in either your name or your mum's name, then you should have been given the opportunity to maintain the repayments through your IVA, as part of your expenditure allowances, so long as it was affordable for you, and that the car was necessary to your basic living needs.

If, by including the HP payment in your expenditure, your ability to afford the IVA fell below your creditors minimum requirements, and if this is the reason you were told not to continue with the HP repayments, then you should have been alerted to the problem you now face, and should have had an opportunity to consider the implications on yourself and your mum before the IVA began.

The action your mum takes next will depend on which of the above situations is true. Remember, if she has other unsecured debts then she should deal with all the debts as a whole and not individually, so as not to create a preference to any one creditor.

As I said in your last thread, it may be better to start a new thread on the main board, as more people will be able to give her advice.

Good luck.

MIVAA