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I have recently received 6 years worth of bank statements from my old bank (HSBC) to reclaim the £2500 worth of charges. At the start of my IVA I owed HSBC around £8000 including interest and have been in my IVA for 1 year now. Could anyone explain the process of what happens if I successfully claim back the charges? I assume the money will go into my IVA but will that reduce the term of my IVA or will it work another way? Also, will the money come to me to pass on or will HSBC know to send it to my IP?

Hi
HSBC will probably use the money to reduce their claim to zero and then the remainder will go into your IVA pot.It will mean that your creditors will just get a higher dividend or if you are already returning a 100% dividend then your term will decrease.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

HSBC will probably reduce their claim to £5,500 I would have thought, but this is an interesting topic and I am seeking legal advice at the moment with regard to the right of set-off.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk