Can creditors come back for more once IVA cleared

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Chel58
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by Chel58 » Fri Aug 17, 2018 1:12 pm
I am one year into my IVA and have received a lump sum that will clear my IVA. Once I do this can the Creditors come back for more?
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Foggy
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by Foggy » Fri Aug 17, 2018 2:02 pm
Chel58 wrote:
I am one year into my IVA and have received a lump sum that will clear my IVA. Once I do this can the Creditors come back for more?



First we need to know where this lump sum has come from. Also .. to "clear" your IVA you need to pay over the full original debt, fees and possible statutory interest. A "F&F" is a different, less expensive, matter ... but whether that is possible depends on the source of your lump sum.
Chel58
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by Chel58 » Fri Aug 17, 2018 2:12 pm
My lump sum came from an unexpected divorce settlenent, originally thought I wasn’t entitled to anything
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kallis3
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by kallis3 » Fri Aug 17, 2018 2:21 pm
Agree with Foggy - you will have to pay your debts off in full if your divorce settlement covers it, otherwise it will go towards your IVA.
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Lisa Thomas
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by Lisa Thomas » Fri Aug 17, 2018 2:34 pm
If there is enough to cover the total debt, interest and costs then you will get back any surplus and the IVA creditors will no longer be owed anything to be able to pursue you...
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Foggy
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by Foggy » Fri Aug 17, 2018 2:37 pm
OK -- the divorce settlement will be regarded ar a windfall and will all be payable into the IVA. If it brings you to the settlement figure of full debt, plus fees and possible statutory interest, the IVA will conclude. If it brings you close, the IVA will conclude when the following few payments hit that figure.
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Foggy
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by Foggy » Fri Aug 17, 2018 2:39 pm
I might add that, if it covers that all, you will be entitled to keep any PPI refunds you might get, so, at the same time as the completion certificate, ask the IP for a letter of no interest in PPI.
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