But surely Mel the banks can only set off where the debt still exists! I assumed that legally debts are written and no longer exist once the IVA has completed! If this isn't the case and a bank account is opened post IVA with a former creditor then they can take money out of your account as pre IVA?? If the banks can set off post IVA then debts are not actually written off???
Hi Muggins, playing devil's advocate here ... if, by your arguement the debt no longer exists following completion of the IVA, then nor does the PPI refund. If, as you say, the bank can't pull monies into a now-existant debt, then, surely, they cannot pay anything out from it either !
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I agree with you Muggins - of course that is correct - but at present we are not sure whether this poster has paid all of their debts back or only the amount they were required to pay into the IVA.
You are correct in that debts are written off at the end of the IVA, the difference with PPI is that this relates to an asset which was in existence at the time of the IVA and therefore the IVA creditors may still be entitled to it.
Your issue about bank accounts is not relevant, as new credits cannot be off-set against earlier debts - as there is no mutuality in the set-off argument.
Foggy: the ppi was an insurance and sold seperately! Whilst it may have been attached to the debt it is still seperate! Otherwise hw can anybody claim against loans etc that have now been completed or against mortgages which have been settled!!
Thanks Mel! If the debtor has completed the IVA whether they paid 100p or not if the IVA is completed then the banks cannot surely take the money to pay that one debt! Shud it be an asset and the proposal has the all asset clause then the monies shud be paid into the pot and distributed evenly??!
Also foggy yr argument would contradict many of the IP's on here who have stated that claims companies can dig out old accounts which may have had ppi attached to them but were satisfied prior to the commencement of the IVA!
I think that you may be wrong there Muggins - if the bank have the right to set-off the debt, then they can set-off against any debts due to the bank, before the balance of any monies due is shared with other credtiors.
I'm confused now then!! Is this only once an IVA is completed? If so I thought that the debt no longer exists as per the IVA agreement! If this is anytime then why are ppi claims paid into the IVA pot and distributed amongst all creditors? Sorry but I'm finding this one difficult to get my head around!!!
The debt no longer exists in so far as no NEW money is required in payment. PPI is an asset which existed at the time of the IVA and if assets are captured within the terms of the IVA it is due in payment of those debts.
My IVA proposal is explicit in that creditors should set off their own debt first and then introduce the balance if there is one. Hilarious really - means Richardson Mail are effectively working for free in my case. **smiles**
I'm also confused now..!!
I understand about PPi being an asset at the beginning of the agreement (IVA), and that set off can be used by a particular creditor, but what I am still unsure of is this:
If an IVA is 'completed', therefore the debt to say creditors A,B,C are 'written off', then if a PPI claim from say creditor B is succesful, can they offset against their 'original' (now written off debt) before any surplus goes bck in the pot to creditors A & C?
I thought that after a fully completed IVA, the remainder of the debt was written off, therefore no longer in existence, but does it mean that any PPI attached to a previously written off debt can then be used to set off what was written off???
dawnyosf I am totally on your wavelength! I too thought exactly the same! As with a poster not so long ago, when they claimed ppi post IVA completion the bank also said they were going to keep it! On sending them the completion certificate they then agreed that there was no debt and sent them the claim monies! I cannot believe that unless specifically in your proposal the banks cannot do this!! I think I would def challenge them! They agreed that all debts written off post IVA completion!!
Broke of London and dawnyosf are correct. If anyone else is confused at this thread, which does seem to be going around in circles, can I suggest you either seek legal advice or consult with your own IPs.
Thank you everyone for your comments and feedback.....i will be persuing this further.
I am somewhat peed off that I am the one being treated as the guilty party by beding expected to pay in full a debt that retropectively was incorrect.... if I have to pay the full debt off there is no justice, it means they got away with misselling ppi, I wont even get the full amount of ppi payments made returned, without any interest applied.
i basically am being asked to pay the interest on a debt that was inflated by their misselling....as i mentioned before, over 50% of the iva debt was made up of missold ppi.....
I meant to mention I spoke with my IP who contacted the bank also, can only assume whateverthey said worked in terms of bank settling full £20k....and it paid to settle my IVA debt off in full....otherwise I would have accepted the set-off rules.... Big smiles...
