How does an IVA work please?

Boggles1234

This is a bit of an odd request but I am hoping someone here can help me understand a bit more about them.

I have a customer who owes me £125 on an account that I froze 2 years ago after he stopped making payments/responding to letters. I have sent him a bill and then 6 weeks later sent a letter by registered post explaining that I will have no option but to consider legal action unless he discusses making a payment against the debt.

He came to see me today and explained he was having financial trouble so I explained that I didn't want to have to cause problem but also I couldn't just write off a debt of that size. I offered to accept an amount of £72 (approx cost price of the goods) payable at £3 a month over two years. The amount owed is purely for goods and doesn't include any charges, interest or anything extra.

He rejected this and said he was in an IVA so he only had to pay them and I hadn't a leg to stand on and basically it was my tough luck.

However, what I want to know is can he have started an IVA without declaring my debt as part of it and if so, do i have any course of action i can follow? I don't want to have to make a fuss and cause problems for him through bankruptcy or whatever but on the other hand, I can't afford to write off amounts like that.

Can anyone help please?

cassy

im no FA but,
i dont think he HAD do include it in the IVA but,

you can still claim the cash back like a normal collector.

the only way you carnt do anything is if it is already included in his IVA and if it had been you would already know

creditors who are included in the IVA would not be able to take action but since your not included you follow the normal way, to be honest if i was in his position i would take the £3pm

Poosmate

I think you've been very reasonable about the matter and he's the one being unreasonable.

I don't know how IVA's work but I would imagine if he got caught up in any legal action you may take maybe his IVA provider would find out about it and he'd be in even more trouble.

Hope you get your money back.

Poo

10past6

Boggles1234 wrote: »

Can anyone help please?

One of two issues here, did you give him credit AFTER he entered an IVA, or did he have this debt whilst his IVA application was being processed? either way, I suggest at this stage you go back to him and inform him, he may well be in breach of the T&C’s regarding his IVA, inform him if it’s not sorted amicably you may well seek further advice via his IVP.

If you require further advice, come back and ask.

Good luck

Boggles1234

10past6 wrote: »

One of two issues here, did you give him credit AFTER he entered an IVA,

No. He had an account with us for about 7 years and used to pay monthly. He then started missing payments and hence the debt built up. As far as i could tell from what he said, he had only recently taken out the IVA.

I was under the impression that you had to include all creditors in an IVA. That was what had confused me.

I think I have been more than reasonable and he has refused a generous offer so I am just going to wait out the time given in the letter and then file through the moneyclaim website. He would then be given chance to accept the deal before procedings are finalised. My only concern is that if I get too bogged down in whether he is right or wrong I would miss the filing date given and, IIRC, once you have given someone a fixed date in a formal notice you can't change delay withut running into legal problems.

Thanks for the replies folks.