Hello.
I completed my IVA in march 2012 and have recently been awarded a PPI settlement but some of the creditors are off setting the award towards their debts that were included in the Iva. i have fully satisifed this iva and received my comletion certificate.
Are they allowed to do this?
Hi and welcome to the forum. Did you begin the claim before your IVA completed? One of our knowledgeable posters will be along later to advise further. x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
The PPI claim was an asset during your iva so arguably the iva shouldn't have completed until the asset was realised and introduced. This is a sticky situation...as you say, your dealings with those creditors were settled but then you 'unsettled' them by going back for a second bite at the cherry.
Legally I don't think the creditors have a leg to stand on if you choose to pursue the money from the PPI claim as the IVA is settled. However morally I think you need to allow them their 'pound of flesh' if the IVA allowed a good percentage of your debt to be written off. If it was me I would let them have the money to set off against my original debt. It is a personal decision as to whether you chose to take legal action against the creditors or let it go.
Last Payment made 04/12/14. Completion Certificate 25/7/15. IVA company GT. No Issues
This is, indeed, a tricky situation and hasn't been fully tested yet. I have read of one IP who reopened an IVA, as trustee rather than supervisor, to claim all of the PPI payback for the creditors.
Whatever the morals and individual views on the matter are, for safety's sake it would be better to leave sleeping dogs lie after the IVA has finished.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
It would be devastating if creditors could change their mind about settling the debts after the iva was completed...but in effect this is exactly what debtors do when they go back for PPI after settling debts. I'd leave well alone. it undermines the whole iva process.
True BoL ... if my IP hadn't decided to investigate, as I have said before, my plan once the IVA was concluded was to draw a line under the whole affair and still have "saved " 10's of thousands in write off and, more substantionally, frozen interest.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
