Claiming during IVA

[whiz_bit]

After my success with HSBC I am helping someone on the road to claiming her bank charges back from Lloyds. She is presently paying off her debts through an IVA, including a loan from Lloyds and a credit card I think, I do not really know the details. She is about one year into the IVA.

 

Does anyone know if this will have any affect on her claiming her charges back and if that will affect the IVA?

 

 

 

Whiz_bit

[Guest bong]

You will need to read the IVA proposal that was approved by her creditors to see how it provides for any 'windfalls'. The IVA will not prevent her from claiming the charges back and as the money is technically hers Lloyds will not be entitled to set it off against her debt to them. However there will probably be a provision for handing it over to the Supervisor of the IVA for the benefit of all creditors.

 

The terms of an IVA are always individual and you have to check the terms she agreed to. I would guess it is unlikely she will get to keep the money unless it exceeds her debts and the Supervisor's costs.

[banofi]

Any claims won and paid into her IVA agreement will help her in the long run anyway and shorten her IVA agreement. I'm in debt management (similar to an IVA) and I just see it as getting out of debt sooner rather than later if and when I win my claims. I'm trying not to think about it in terms of "gaining" extra money in the short term (although it's tempting!). I'll just be out of debt earlier. Good luck!