We are in the 6th year of an iva. We have a joint bank overdraft but it's just hubby's iva. The overdraft has been paid off now but the iva payments are still being made to it so is in credit now. Not sure how the iva peeps haven't spotted this error? I assume it's best to contact them and let them know of the mistake. Otherwise the account will be about £300 credit at the end of the iva if the payments continue.
Tell them otherwise you risk serious delays with his iva closure.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
Have you continued to use the overdraft or have you paid any money yourself into it? This is relevant because if you cleared the joint debt then you are entitled to claim from your husband's IVA so the payments may be correct.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Michael Peoples
Have you continued to use the overdraft or have you paid any money yourself into it? This is relevant because if you cleared the joint debt then you are entitled to claim from your husband's IVA so the payments may be correct.
Hi. Haven't touched the account since the iva started. I have paid some towards paying off the overdraft. But the iva has been paying monthly into it for years as well. I just kept an eye on it to see how it was getting on. I notified the company this morning.
You have paid some and the IVA has paid some so it may depend on exactly how much. If you repaid more than half you can claim but if the IVA paid in more than half it may be liable to a reclaim.
The IP may just ignore it given the amount involved but you have done the right thing.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Michael Peoples
You have paid some and the IVA has paid some so it may depend on exactly how much. If you repaid more than half you can claim but if the IVA paid in more than half it may be liable to a reclaim.
The IP may just ignore it given the amount involved but you have done the right thing.
How can they reclaim back? They put the account in debit again?
Received a letter from iva peeps a few days ago asking if I want to claim back some money from the iva for paying into the overdraft. I have paid over 1000 quid of it off myself. I am getting together over 5 years bank statements to send then (which they have asked for). I'm not sure how this will work now since there are only 10 payments of the iva left. If agreed how would I get any money back?
The IP will have to calculate what if anything you are entitled to claim. It may not be much if anything at all but certainly worth trying. It would nice to get it soon but I doubt it.
You will normally rank as an unsecured creditor alongside the other creditors but as a spouse your IP might put you at the bottom of the creditor pile, which means you won't get paid unless the other creditors received 100 p/£.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Lisa Thomas
You will normally rank as an unsecured creditor alongside the other creditors but as a spouse your IP might put you at the bottom of the creditor pile, which means you won't get paid unless the other creditors received 100 p/£.
But the other creditors will never receive 100 p/£.
Personally I would put in a claim. There is no guarantee that as an associate creditor you would have to stand aside and in addition you would be claiming as a subrogated creditor and not an associate. The fact that you repaid the overdraft means you are entitled to claim in place of the original creditor.
Ok so my bank statements have come through and I have paid £3250 over the life of the iva. Overdraft was £3500 plus the obvious interest that was incurred. So in my opinion I have paid way more than my share (hubby's wages are about 1.8 times mine per month.
