Full and Final Settlement

[MikeyM]

It’s a few years since I was on this site and I suppose in one way it’s sad that it is still going because that means people are still getting into serious debt but excellent that it’s still here to help those people. It was certainly an incredible help and support when I was in my IVA and for that I am extremely grateful to everyone who helped.

I do have a query for the experts but my story in a nutshell.
Joint unsecured debt with my wife £95000
IVA 2012
Full and Final Nov 2015
Certificate of completion Nov 2015
Full credit status restored 2018
Remortgaged 2020 to pay off secured loan

I post this just to give encouragement to those currently struggling. Hang in there things do get better and you will recover.

For the experts. If I come into a large sum of money now, which is a high possibility, is there an obligation to declare it to my former Iva supervisor and consequently creditors, given that I settled in Nov 2015.

[Foggy]

Great to hear things are going well. Any inheritance, windfall or similar which arose or arises after the date of your completion certificate is yours and of no interest to your former IP or creditors.

If an inheritance suddenly surfaced from Great Aunt Maud, who died before that date, then this will be dragged into the IVA trust, as would PPI which existed, albeit unknown about, during the IVA.

[MikeyM]

Here’s the scenario. I had a secured loan taken out in 2005, so active during IVA period. I repaid that in 2020. It now seems that following action by regulators there may be some very large interest repayments due to customers, past and present who had loans, with that company. If I am due a refund do I keep it?

[Foggy]

I could not say for certain, but, playing devil's advocate: The secured loan repayments would have been allowed as an expense in your I&E, so denying this amount to creditors as part of your disposable income. Had interest not been over-charged on the loan, these repayments would have been lower and, therefore, your disposable income and, by extension, your IVA payment, would have been higher. So, arguably, at least some of this repayment coveing those payments made during the IVA, should be paid back to the creditors.

[MikeyM]

So the full and final settlement is basically not that?

[MikeyM]

Actually Foggy just dug out my letter Final Report to Creditors.

It states: “... creditors agreed to accept the debtors offer of full and final settlement. There is nothing further to be done in relation to the voluntary arrangement as the debtor has complied with the contractual terms, and your claims against him are now completely extinguished.”

I’m taking that at its word. And would be prepared to challenge any claim.

[Foggy]

That is good ! Most Full and Finals are neither full nor final, but just a moratorium on regular payments. They do not often lay out a full extinguishment.

[MikeyM]

Ah well. It was Melanie Giles.

[Foggy]

Ah well. It was Melanie Giles.

That would explain it