IVA Adminstrator going into administration

kentgirl16

I have found out that my IVA administrator has itself gone into administration.
How will this affect my IVA? Will I lose all the money I have paid in over the last four years and will it mean I will be back at square one,finding I am still in debt?

I have tried to ask the company what will happen but am not getting any answers. Will my money have been protected?

toddle2u

Being in Administration it means that it can continue to trade with the protection of the courts from creditor action. From press reports it seems that the administrators have regulatory approval to continue to trade and therefore you should continue to make your IVA contributions as normal. The administrators will seek to sell the business as a going concern. The majority of your repayments over the last 4 years should have already been distributed to creditors and your money will have been protected.

Tinks74

As said above the company may either continue to trade or will sell their cases onto another company.


IVA funds should be held in individual separately identifiable clients monies accounts and are not counted as company funds so any money you have paid that has not yet been distributed should be safe, you may well be given a new account number to pay your contributions to the new IP though.


If there has been any fraudulent activity leading up to this, and I am not saying there has been, an IP is required to hold a Specific Bond insurance in place for each individual case along with a general bond to cover all cases, this can be called upon to return the arrangement to the pre fraud position so that the creditors do not suffer a loss as a result of illegal activities.


There should ultimately be no effect for you as the term of your arrangement are set by your creditors and are nothing to do with the sale of the portfolio of cases.


You may discover the new IP deals with things in a slightly different manner however it should still be generally the same.
As long as you have maintained your end of the arrangement it should not, by virtue of the sale/transfer of cases alone, cause you any problems.