help needed , iva non claim cheque refund ????

debtdummy

hi, i have been contacted by debt free direct,,, they have send me a cheque back , apparently one of my companies i owe money too didnt claim it.
my iva finished in 2011 !!! 4 years later a cheque lands on my doorstep , i ring them up and they say dont spent it as my claimant can still claim ,,,,
help... what do i do ?? surely my iva is over and done with and whatever money left is mine ???

TakeAwayKing_2

The standard term in an IVA proposal would be that if a creditor doesn't cash their cheque, the funds are forwarded to the debtor to hold on their behalf. If the creditor gets in contact with the IP, they will be told of this and will come to you for their dividend that you are holding for them.

sourcrates

One of my creditors, whom I owed over £10.000, never claimed there money either, from my IVA.
But the usual scenario is that the money is shared between your other creditors, unless they have received back 100% of what was owed, in which case any surplus would come back to you.

My IVA ended in 2013, I have not heard anything in regard to this, as yet.

But you are correct, and I've had this confirmed by a solicitor, once your arrangement is finished, and you have the completion certificate, the IVA is dead, and cannot be resurrected.

If a creditor does not claim in the IVA, they are still bound by its terms and cannot then pursue you outside of the arrangement, so the money is now yours.

TakeAwayKing_2

Or listen to sourcrates. Who just posts in the hope that eventually something will be right lol.

Tinks74

Sourcrates is thinking of a Creditor that doesn't prove their claim in the IVA at all.


The situation seems to be, as TakeAwayKing appears to appreciate, that a cheque that has been issued to a Creditor who has already claimed in the IVA remains UNBANKED at the end of the arrangement. They are often referred to as unclaimed dividends but unbanked dividend is a more appropriate name.


debtdummy: it is not an unusual situation, I am personally aware of several similar payments being returned by TIX (The Insolvency Exchange) to an IP on cases that were closed a similar time to yours.
Be thankful you had not moved house, trying to refund monies to a person for whom you have no up to date contact details is not easy.


The Creditor is entitled to ask you for the value of the unbanked dividend back but ONLY the amount of the unbanked dividend you received - nothing more!
There may be myriad reasons why it was unbanked by them in the first place, their records may show the debt as sold, repaid or written off.


I do not know how long they have to ask you for it back.
The 6 year statue of limitations would probably have some bearing, but the question is when does the clock start ticking? Because in order to be paid the dividend cheque that they have failed to bank they must have proven the debt in the IVA. Maybe someone else will have an idea on that one.


Consider the value of the cheque, is it high or low, would you be able to easily repay it if asked?
If yes then spend it.
If no then stick it in a bank account and forget about it for a few years.
If you don't know, then still stick it in the bank, it'll do no harm.

sourcrates

TakeAwayKing wrote: »

Or listen to sourcrates. Who just posts in the hope that eventually something will be right lol.

Sorry ?

Don't understand your reason for posting this ?

Paula1301

Hi,
I'm in this situation too, having recieved a cheque from debt free direct for unclaimed money from my closed IVA, did you get a solution? If so I would love some advice on what to do?
Thanks