Old dormant account after IVA!!!

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abbiesmum2003
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by abbiesmum2003 » Wed Dec 19, 2018 9:27 am
My parents are in the process of relocating and selling the home I lived in as a child.
While decluttering they have come across a passbook for an account I had as a child.
Its in my maiden name and hasnt had any activity on it since 2001.
Unfortunately it is with a bank which was in our IVA (loan, credit card and overdraft!!!)
There appears to be a bit of money in the account (but theres also 17 years of interest to add on) and having read info online last night about dormant accounts that money should still be available even after all this time as I have proof of its existance and my identity.
My question is is it going to be claimed by the bank if I attempt to claim it towards the IVA and debt theyve written off?
We have our CC although still on Insolvency register. IVA appears as 'discharged' on credit report.
I didnt know about this account before/during the IVA. I moved out in 2000 and went to Uni, then had a child and settled in my own home. It has simply been found this weekend while my parents decluttered a home theyve been in since 1992 so you can imagine the stuff!!!!!
I just want to know if I can rightfully go to the bank and ask for the money back and close the account, or if it will be a fight.
Is it best to wait until next year when the IVA comes off the register?
What are your thoughts please?
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Foggy
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by Foggy » Wed Dec 19, 2018 10:52 am
The bank will have your IVA on record whether it is in the Register or not, so you could just grab the bull by the horns. How the bank approach it is anybodies guess I am afraid, but I guess you have nothing to lose -- I doubt we are talking a King's Ransom.

Technically, even though you weren't aware of it at the time, it is an asset which wasn't disclosed, so could even be claimed by creditors through the IVA trust.

Bit of a "Brexit Dilemma" --- You want to leave but have no idea where it's going to go !
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Lisa Thomas
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by Lisa Thomas » Wed Dec 19, 2018 12:39 pm
The monies will either be offset by the Bank or are due into your IVA...
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abbiesmum2003
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by abbiesmum2003 » Wed Dec 19, 2018 5:49 pm
wow ok well i'll just leave it then. Not worth the hassle for something I never knew I had.
Can I ask why it would be claimed as an asset even after IVA completed??
I know PPI is theirs even after CC obtained.
Why would a child bank account be classed as theirs too?? Its 17 years ago that it was last looked at.
Im just asking.
What if you lose a relative during end of IVA but things arent sorted til after.....is that inheritance theirs aswell as technically youd know you had inheritance coming but not declared or available.
Im just puzzled as to when we are classed as being 'free'. Seems like still 'trapped' and things could still be taken by creditors.
Will the IVA remain on their records forever or disappear eventually?
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Foggy
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by Foggy » Wed Dec 19, 2018 6:26 pm
It is classed as an asset because it existed, albeit not known about, during the IVA. A child account would not be part of the IVA if said child was not the person, now grown, in the IVA.

An inheritance also belongs to creditors if the donor died during the IVA, even if the estate is not dealt with some time after completion. I don't actually agree with this, but it has been ruled otherwise: I feel that the operative date should be when the will is proved, not the date of death, as until such time as the will is proved the bequest isn't legally yours.

You are "free" for anything after the IVA ... clobbered for anything during the IVA or prior to it.
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Lisa Thomas
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by Lisa Thomas » Thu Dec 20, 2018 9:19 am
It's a little complicated but had you known about it when you produced your proposals you would have disclosed it as an asset and would have had to pay it over (unless creditors allowed you to keep it, which would have been unlikely).

As your IVA is finished you could ask your IP if they will allow you to keep it but there is a chance they will argue the assets belongs to the IVA trust, even though it's completed, and they could resurrect the IVA to pay the monies over to the creditors.

Your other option is to speak to a specialist insolvency solicitor to see if they believe you have any rights to it technically and will liaise with the IP on your behalf, but this will likely cost you some legal fees.
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