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A good starting point for IVA questions
I've been helping a mate with his IVA and he's received some information from the company dealing with it.
According to the figures they've sent him, he originally owed about £16,500. He's repaid around £13,500 and there's £3,000 still owing. He's got an outstanding PPI claim which he's acknowledged will be paid into the IVA (approximately £2,500 due from that), and unless I'm missing something, this means he will eventually have paid almost all of what he originally owed.

The IVA company has sent him a computer printout of an IVA proposal with his name and details on, but which is neither signed nor dated, along with a photocopy of a chairman's report with a date in late January 2014.
The computer printed and unsigned IVA proposal says, "I propose the property (his house) is excluded from the arrangement and that the term has already been extended by 12 months.)
But later in the same document, the house is listed under the heading of "Assets Specifically Pledged." This is at odds with the earlier proposal to exclude, so I'm not sure where to go with this. We've sent the IVA company a letter requesting a completion certificate, but there's been no reply as yet.

Also, on the basis that logically this IVA would have been arranged in the latter part of 2013 if the first payment was made in January 2014, would I be correct in suggesting that he'd be entitled to argue that the 2008 protocol should apply, rather than the 2014 one ?
Hi Steve

Welcome to the forum.

The first thing you need to understand about an IVA is that on rare occasions if funds allow then the individual could end up paying more back than was originally owed. This is because in most standard IVAs if income increases or additional funds can be paid into the agreement from windfalls or equity release the following can be collected:

- 100% of the original debt
- The costs and fees and the IVA company
- interest on the original debt charged at 8% pa from the start of the IVA.

As such as in your friends case even though with the PPI the total original debt is almost paid in full, the arrangement still continues as agreed because the additional costs and interest remains outstanding.

In terms of the equity release clause in his IVA this situation is more difficult to advise on. This is because not all IVA companies have the same terms and conditions. Some IVAs pledge a set amount of equity must be released, some pledge 100% of the available equity in the 54th month, others follow the protocol rules. The specific terms signed up for would be the ones that would have to be adhered to.

Now, if no signed agreement can be produced then could your argue that he agreed to different terms? Perhaps, but that would probably have to be argued in a court.

Really the best option is to come to a mutually agreeable way forward with the IP. If you can't or won't do this they are likely to argue the agreement has been breached and terminate the whole thing. This would leave your friend with outstanding debt. The alternative would be to take legal action against them but this is likely to be a very costly excercise with no guarantee of success.