ClearDebt Gets Judgement Against IVA Council

ClearDebt has obtained an injunction against people and firms involved with the IVA Council, freezing their assets, prior to possible further legal action. The IVA Council is one of a number of companies trying to persuade people in IVAs to abandon them in favour of bankruptcy. Not only are these organisations earning large and unnecessary fees for their “advice”, but they are often suggesting people take action that is against their best interests.

View Full Judgement (923k .pdf) made by Sir Charles Gray in the High Court.

The judge said:

I take the view for the purposes of the present application that there is evidence that they [the IVAC representatives] have been acting in what is a commercially dubious scheme. There has been less candour than one would expect from parties to litigation in the way in which the case has been developed on behalf of the Defendants. Information about IVAC has been slow in arriving, as indeed has information about the relationship between Mr Mason and Mr Lindley and the close connections of the latter, at one time at least, with UKB. I am in no doubt that the condition which requires a claimant seeking a freezing order to establish a risk of a dissipation of the assets is clearly made out on the evidence.

He therefore approved the continuation of a freezing order which would cease if £100,000 was paid into Court.

David Mond, CEO of ClearDebt, said:

I have written to a number of IPs undertaking IVA work who are unhappy about approaches made to their clients by the IVA Council and UK Bankruptcy, and have invited them to start follow up actions in respect of what, I believe are false and defamatory statements in the IVA Council and UK Bankruptcy literature.