IVA... Frustrated a little annoyed

Mj1981

Hi

We have just completed our 3rd year of a 6 year IVA, there were 2 'modifications' placed in order for the IVA to be accepted one being that I return to work once my youngest reaches school age and the other that it was a 6 year IVA rather than the usual 5, obviously we accepted this and signed and are now 3 years in.

My father passed away a couple of months ago and my mom has now. Offered to 'gift us' some of the money he left her to settle the IVA and put it in the past once and for all (she's offered us 4,500).... The IVA company have suggested 5k and she thinks this would be accepted, (creditors would stand to receive approx £5,500 over the rest of the term)

However circumstances have changed since taking out the IVA and I'm unable to work at the moment due to having a child with special needs, I have contacted the IVA company to request details about how this would effect our IVA if we couldn't meet the modification of me returning to work and to be honest I'm being led round the garden path and cannot get a straight answer from them.

Ok we're looking at possibly offering a full and final settlement to complete the IVA but its whether that will even be accepted..

The company that we are with asked us about claiming PPI a few months ago, sent us all the paper work which we looked through and they wanted us to sign over power of attorney, to which we have replied absolutely not and they accepted this and nothing more has been said nor has the topic been approached again.... PPI claiming was not happening when we took out the IVA so is something that has come into force since we took the IVA route.

As there is no time limits (currently) on claiming PPI I am in no rush to do so but this is something I may look into at a later date, I reclaimed bank charges many years ago so am confident I can reclaim PPI without the use of a third party company.

So firstly I have some questions,

1) if I don't return to work as per the modification on the Iva what will the outcome be? The IVA failing? Or will they allow a 'leeway' on this modification, I can't seem to get a straight answer out of the IVA company and they just keep telling me they will keep in touch.

2) realistically are they likely to accept a f&f of £4,500 considering it's £1,000 less than they would stand to get if the IVA ran full term? Again have put this to the IVA company but am getting no where, it is likely the IVA may fail if this isn't accepted as payments are becoming an increasing struggle each month.

And finally

3) if we go on to claim PPI after the IVA has finished what then happens to this money, as far as I can remember there is nothing written in our IVA paperwork about PPI payments as this was not happening at the time we took out the IVA and has come into force since we started it.

Thanks in advance for any tips/advice

MJ

UpToMyNeckInIt

Hi MJ,

Firstly, sorry to hear of the loss of your Father, and your inability to return to work (I am in a similar predicament with my Wife being unable to return to work, due to my Son's medical needs).

However, 2 issues here: the offering of a F&F settlement and PPI Claims.

Based on the information you have provided, the F&F is in the ballpark, although it would be ideal if your Mum could gift you the extra £1000. How successful your existing offer is depends on how willing your IP is to fight your corner (and I suggest you deal direct with your IP, not a case officer). Either way, the money has to be paid by your Mum dirrectly. She will need to state to your IVA company that the money is ONLY AVAILABLE IF the creditors accept this F&F offer, and will not otherwise be paid to you (plenty of ways round that one, but that's a different subject).

PPI reclaiming in an IVA: Firstly, have you ever taken any out?

This subject is a legal mess, and policies seem to vary depending on who your IVA company is, and specific terms of your IVA. There are numerous posts on this and other IVA forums regarding this however, and the consensus is that YOU WILL generally have to co-operate with your IVA firm in reclaiming PPI for the benefit of your creditors. (PPI seems to be classed as an 'asset' rather than a 'windfall' though, so you will need to check your IVA for the policy on exclusion of available assets). Your IVA company may otherwise ultimately fail your agreement, or as a minimum, delay issuing your Completion Cert until PPI claims can be determined.

In your case, if they are being hard-nosed, your IVA company may take the view that you should wait for the PPI claim, before then submitting a F&F. That way, you meet/exceed the originally pledged return to your creditors.

Whilst I sympathise with your position, you must also appreciate that as IVA customers, we all agreed to pay back as much as we can afford. So, why would your IVA company consider a low-dividend F&F offer, when you have a potentially lucrative PPI claim pending?

If you can answer the above question with a reasonable arguement, then your F&F may stand a chance. If you cannot, you will likely have a fight on your hands.

Sorry if that is not the answer you were looking for, and I wish you the best of luck in sorting this out.

Mj1981

Another quick question, our IP is ........ This is what's signed on majority of our paperwork now I know the company we are using have used this person but he doesn't actually work for them however I would like to speak directly to him to discuss our full and final settlement offer, BUT every occasion I have asked for contact details for this person I am told I cannot contact him directly and that I must go through our company who will then contact him on our behalf. However we are still going round and round in circles with the IVA company.

Thanks

Mj1981

Many thanks for your response,

I am unsure whether we have taken out any PPI but we were not happy signing over power of attorney to our IVA company to peruse this and they have said that's within our right and haven't mentioned it since.

We are currently making payments of £140 per month so by calculation with the 3 years remaining they are said to get another £5,040 however reading through some of the posts in here I believe that some of that money will be for the IVA company and not actually for the creditors.

I have spoken in depth to my mother and really don't want her to have to bail us out, but I am willing to swallow my pride with this purely because a)we are struggling to meet the payments each month as it stands at the moment and have looked at the BR route and b) I cannot return to work because of my son and the IVA company won't give us a straight answer what the implications of this will be considering it was a modification on the IVA

So my theory is if we can get it paid off and sorted then these issues won't be a problem any longer.

It's such a minefield, and we just can't seem to get a straight answer from anyone, I don't think PPI would come into it as a) I'm unsure whether we have taken any out (and I have told this to the IVA company) and the fact that we refused to sign over power of attorney to them and they have left it at that and not badgered us any further for this.

Anondebtadvisor

Have you got the exact wording of the modification? This modification is usually to ask you to seek work if it is financially viable they cannot make you take a job or indeed find you one.

I think you should explain your circumstances in a letter, for example tell them about your child and the effect you going to work will have on him/her, the expense of child care, how your child condition affects you and your health etc.

Who is your IVA company?

Anondebtadvisor

If your little one came along after you agreed the modification then obviously there has been a change of your circumstances so you should also explain this to your IP

Mj1981

The modification states;


‘Once the youngest child reaches full time school age, Mrs ...... must endeavour to seek full time employment which is expected to be 35 hours per week, unless the debtor can provide evidence to the Supervisor that this will be financially detrimental. Any surplus income must be paid into the Arrangement for the benefit of unsecured non-preferential creditors. Failure to comply with this modification will constitute a breach of the arrangement.’

My son was born before the IVA was taken out but he was only 8 months at the time so non of his current 'special needs' had presented themselves at the time it was taken out its only really been the last year that it has all come to a head which we informed the IVA company as soon as it became apparent.

Anondebtadvisor

They are asking you to seek employment but obviously that is not an option for you due to the change in your circumtances, ie your little ones specific needs.

I would suggest that you put forward your full and final offer to your IP explaining your circumstances and ask them to call a variation meeting

Mj1981

Thank you, I am trying to get in contact with them with regards to a full and final settlement offer and have requested that we be allowed to add in a 'letter' detailing our current and future situation with regards to my son and being unable to work etc but its like getting blood out of a stone!

I understand they are busy but does it really take over a week to let you know whether an offer is likely to be accepted or not.. A good reason for this to end swiftly is so that we don't have to continue to deal with the IVA companies complete lack of interest!

Anondebtadvisor

It is not for your IVA company to decide if they will accept a full and final offer, it is a decsion for your creditors to make at a variation meeting.

I wouldnt bother waiting for them any longer, get all your information together and evidence, eg medical evidence, letter from your parents making it clear that the money is only available for the purpose of settling the IVA and no other and a letter from yourselves outlining your circumstances, how child care is not an option due to your childs needs which have been diagnosed since you approved the modification.

Send all this by recorded delivery and request that they call a variation meeting, if you have a property they may want a recent valuation and mortgage redememption statement

Mj1981

I know we're in negative equity with our property next door sold for 80k a couple of months ago so we are at least 10k in negative equity if not more so I have no probs getting that info for them if required

But I will get onto all that today thank you, will my mom need to send in bank statements or ID or anything to prove the offer is valid and the money is there on offer to us?