Protective certificate question

Inlimbo

Registered User
Messages
1
Hi all,

First time user here. I have a question regarding a proposed personal insolvency arrangement. I entered a pia last October in an attempt to solve my debt problems. The court issued a protective certificate on the 23rd October 2014 which expired on the 1st January 2015.

A meeting of creditors was called on the 18th December 2014. The bank which had a majority vote in the first threshold (65% required) rejected my proposal ('the veto') which resulted in my pia failing.

I had an investment property with this bank which was put into receivership in April 2014. I remained in contact with the receiver from day 1 to determine what course of action they would be taking as it would have an effect on my pia. In September 2014 the receiver noted (in writing) they were adopting a 'rent & hold' policy and not putting the property up for sale.

In January 2015 I discovered that the bank/receiver in question had the property sold (not sale agreed.....sold!) the property on the 22nd December 2014, just 4 days after they vetoed my pia proposal. My proposal was a third party lump sum offer which my pip was very optimistic would be accepted (lost business in 2011, unemployed since)
At no stage throughout the pia did the bank inform my pip this sale was occurring. Simply put they ignored the instructions of the court regarding the protective certificate and used the majority vote at my creditors meeting to block my proposal which they would not have been able to do if the property was sold prior to me entering a pia.

I contacted the ISI to discuss same and despite the s96 of the act stating this action is prohibited, they informed me that once a creditors meeting has been rejected the creditor take any actions they deem necessary. This was news to me! I suggested the bank had ignored the instructions regarding the protective certificate and were actively exchanging contracts for sale throughout my pia ( they didn't just advertise the property for sale, receive contracts and close the sale over 4 days, 2 of which were sat and sun) with a view to maintaining their veto all the while not informing my pip. The isi agent I spoke to said he'd never come across this situation before, but i got the impression he had no interest in helping me. Additionally, My pip offered no advice and has since run for the hills.

It should be noted I have no guarantee other creditors would have accepted my offer but this banks actions have vexed me. Like a lot of people on this site, I have lost everything I worked so hard for and just want a chance to start over.

I engaged a solicitor in January 2015 who wrote to the bank via the the receiver asking for clarification on which legal basis they sold the property while the PC was in effect. The response we got was,

"In circumstances where the protective certificate ceased to have effect on the 18th December 2014, there is nothing in the 2012 act which precluded the sale of the property at xxxx"

This couples with the isi's response. My solicitor reckons there is nothing I can do to fight this and should just accept the outcome.

My question is this. Are there any full disclosure requirements on creditors regarding debts (like the debtors) in pia's to prevent this action from occurring?

I have no doubt this bank knowingly hoodwinked my pip with the sale of the property with the intention of maintaining their veto and ultimately blocking my pia (don't know why?).
If nothing else I would like to inform others to be wary of this practice. So much for the 'spirit' of the insolvency legislation? I remain in limbo.
 
Hi Inlimbo,

Sounds odd to say the least but not surprising. Isn't the protective order (3 months) supposedly sacrosanct?? Your scenario is very unsettling.

I have lost confidence in the whole PIA procedure. We are currently going through the motions with a good friend. I too have become wary of the procedure.

Firstly, the debtor must contact his/her lenders and obtain up to date loan statements. For anyone going through this procedure will know how difficult it is to obtain loan statements when a loan is in default. The PIP agreed that this is the feedback they are also getting from other clients but yet the PIP will not make contact with the lenders to demand the loan statements.

The debts included in a DSA/PIA cannot have been obtained fraudulently. I still laugh at this one. How many P60's were exaggerated during the boom not just by debtors but by institutions too? If that's not fraud what is?

My friend has still not obtained a protective certificate because his creditors are slow to post them. PIP kept telling him to press further but he was getting nowhere so he told PIP he would have to abandon the PIA process. Magically out of thin air the PIP wants to make contact with his creditors for him i.e. a call from for the statements. Hilarious giving the fact that he was told they could not do this.

I find the whole procedure deplorable and very much in favor of the lender. Having got an inside into the PIA I am now more in favor of bankruptcy in the UK.
 
Also just to add to my previous post. A letter was sent from our PIP to the sheriff who one of the debts is with. This letter was ignored. I have absolutely no faith in the procedure.
 
Back
Top