Although I asked my IP for a copy of the T&Cs assocaited to my IVA, they sent me 2 documents yesterday that included the original proposal and what looks like the Chairmans report from the start of the IVA, which has the following info within it:-
1. Repayment by Creditors
Where any creditor agrees, for whatever reason, to make a repayment to the debtor during the continuance of the IVA, then that payment shall be used solely in reduction of that creditor’s debt in the first instance. If such repayment results in the creditor’s debt being entirely extinguished (after the application of set-off) any surplus will be treated as a windfall and offered to the Supervisor for the benefit of the Arrangement.
Do you think from thE wording that any PPI I am entitled to from one of my creditors will simply go into the IVA?
Do you think I am still missing the T&Cs from the IP?
This is a clause which is included in the IVA Protocol Terms and Conditions, which does appear to allow creditors to set-off compensation for mis-selling against balances due to them - with only the net proceeds (if any remain) becoming available for the IVA.
Current legal opinion appears to be divided on whether this clause constitutes an absolute right of set-off, and whether there is mutuality between the debt and claim to enable this to be correctly utilised by creditors.
