Won CCJ but debtor has IVA now

terryjread

I couldn't find the best forum topic to post this under, so please forgive me if there is valid topic.

To summaries our situation:

1. Booked a landscaper to do our garden, collected references from previous jobs and then sent just under £2k for materials
2. landscaper advised materials were ordered and scheduled for delivery.
3. day the job should start the excuses started and materials were apparently rescheduled
4. weeks went by, multiple excuses and last minute cancellation and we cancelled the job and asked for money back
5. he admitted to have spent the money and would return the money the following week
6. money not returned, so agreed to a payment schedule, of which he failed to make the first payment
7. small claims court processed and we won
8. we then find out that he got an IVA, a few weeks before the official CCJ was issued but we were added to the IVA later on.
9. Due to other debits we will receive approx £4 a month, and will never see our money returned.

I think IVA are brilliant, and my parents have used them also when debts got too much for them. However I feel like it is unfair that we were never a "creditor" and he basically had no intention of doing the job, and I believe the term is a "tort victim". We have received an email from the supplier even saying that no order for materials for our address was ever placed.

The IVA firm advised that we are not counted as a preferred creditor and therefore should get the same payments as the other creditors.

Citizens advice said that the situation was complicated and would required a solicitor. Action Fraud will not investigate.

I wasn't able to find any support for people in my situation and was hoping some others may have gone through something similar and offer advice?

sourcrates

There is no advice to offer unfortunately, you are listed as a creditor in his IVA, and the debt is a qualifying debt, you will receive periodic payment whenever the IP disburses the money in the IVA "pot".

That will be that, unless the IVA should fail at some point, and lots do, then he will become fully liable again, and you could pursue enforcement action against him, but unless that happens, you're stuck with the situation as it is now, engaging a solicitor will just cost you £500 to tell you exactly the same thing.

fatbelly

I agree with sourcrates and disagree with Citizens Advice - the situation as it stands is quite simple. You are a creditor in his insolvency and will receive payments in due course.

As sourcrates hints, most IVAs fail so keep an eye on the insolvency register and update the IP if your contact/bank details change.

There are technical challenges available but I've never heard of any succeeding. There's a specialist article here