Bank want us to settle overdraft.

Royster74

Hi, I've been a forum lurker for a while now but have a question that I'd like to see if I can get help with.

I am in my last year of an IVA. (Working well and glad it's nearly over) My wife isn't part of the IVA.

Near the start, our (then) Bank account had an overdraft that went into the IVA, but as my wife was a second card holder they went after her for the money. Ok that's fine, they placed it with a collections agency and we've been making contributions for 4 years. They sold the debt onto someone else. We called them to start up the repayments. They didn't have my wife's birthday on record so they closed the account from their end and passed it back to the Bank. We have a letter arrive today asking for the full amount to be paid.

How do I stand about firstly arguing the validity of their claim or can I refuse the claim or if I have to repay it, setting up some sort of repayment again to settle the outstanding amount.

Thanks in advance

Foxy-Stoat_3

You say you had this overdraft added to the IVA at the start but you still paid a collections company for the last 4 years for the debt? Why that?

I would send the bank a copy of your last annual review which will have the debt listed out and chase the collections agency for the money they have collected from you, but I doubt you will ever see that again!

The bank cannot chase you for the money if it formed part of your IVA.

Vikipollard

They can chase the OP's wife, though, as she is not part of the IVA and can be chased for the joint debt.

Might be worth contacting National Debtline or StepChange or one of the other free services to ask them the question.

I honestly don't know the answer, but presuming you now don't (either of you) use that bank account, offer to make repayments that your wife can afford?

rabbit_burrow

You will need to check with your IP about what can be done.

During an IVA, your creditors are entitled to 100% of their money (see the windfall clause).

When you agreed the IVA, the % of the debts will have been listed as dividends. So, say you had it agreed that you would pay 65% (65p dividends), then really the bank should only chase your wife for the remaining 35%. Hopefully you have kept receipts for your payments to the collection agency, so that it can be taken off your wife's liability amount.