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What happens at the end of a IVA if four of your creditors havent made a claim. I have paid in £53,000 the debt was £47,997, I agreed to pay 88p/£ back. I have had a letter informing me in August that 4 creditors have not made a claim against the account totalling £19.725, the remaining debt total was £28.462, I understand I will pay the IP fees but what happens to the rest of the monies. My last payment is on the 1st October 2012

Hi,

If some of your creditors don't claim then the others get a better dividend.

Once you have received your completion letter then the others cannot come back to try and get any money from you.

I realise that but I can't pay more than I owe, If they don't make a claim I will have paid all my creditors in full including all my fees, which will leave an excess of money. What happens to that money?

I think I am correct in saying that once you have finished your payments, as part of the closure process, your IP will give the creditors who have not claimed 28 days to do so. If at that point they still have not claimed, then any excess after full settlement of those that have claimed plus IP fees will be returned to you. The creditors who have not claimed will not then be able to chase you for the money, however when they are given the 28 days notice, their claims normally appear!!

My only concern would be that you agreed to pay back 88p/£ but some creditors have not made a formal claim which could result in a few different scenarios.

1. You pay back 88% and as nepensioner says you get back what they haven't claimed.

2. It gets distbursed to the other creditors to increase there dividend (not sure on that and it could mean you achieve 100p/£ to those creditors causing new issues as to whether that should now be taken in statutory interest)

3. These creditors put in a claim so late in the day that means 88p/£ is not enough and you have to pay more in.

1 and 2 fine, 3 is more worrying as how can you or your IP possibly know if you are going to achieve that min dividend when claims have not been agreed?

If a creditor after 5 years or more can't make a claim I wouldn't give them 1 more day after my last payment personally .

In my husbands Iva there were creditors that did not claim, the creditors that did claim were paid in full - 100p in the £ plus statutory interest at 8% then the IP took all thier fees, any difference was refunded to him, this worked out at just slightly less than his monthly payment . Xx