Full and Final Settlement IVA

[recourse]

A friend did a lump sum full and final settlement IVA in 2006 through PKF.

 

Since then, a CCJ has been lodged by one of the creditors, and others are still chasing debt and telling him that the debt is live and still owed.

 

What are his rights in respect of this? Surely this isn't correct or legal?

 

Thank you

[Stigman]

Hi,

 

In relation to the Full and Final settlement that your friend did with the Companies, did your friend get the full and final settlement in writing before making the payment? And did your friend get the Company to place the wording that the debt would be written off and would not be sold on to any third party?

 

As to the CCJ, did your friend know about the CCJ? If so did they defend the CCJ?

 

Stigman

[recourse]

yes, the full and final settlement was made in writing prior to payment....yes, everything was agreed correctly at the creditors meeting....and no, he knew nothing of the CCJ until it had been lodged

 

Thank you

[Stigman]

the Full and final settlement was made in writing prior to payment

 

If your friend still has the copy of the letter of acceptance from PKF, send a copy (copy only) to whoever is chasing for any money.

 

 

and no, he knew nothing of the CCJ until it had been lodged

 

If he knew nothing of the CCJ, it was awarded by default and can be set-aside.

Your friend needs to either go to their local court office and/or download form N244 from here...

http://hmctscourtfinder.justice.gov.uk/HMCTS/GetForm.do?court_forms_id=484

 

Their is a fee involved, but if on certain benefits then your friend can complete form EX160A to have the Court fee's waived.

 

Also, get your friend to check their Credit Records, Noodle is free for life but the smallest of the 3 main agencies, Equifax and Experian are the two biggest, both offer free 30 day trials but please remember to cancel within the 30 days or your debt/credit card will be charged.

 

Stigman

[MIVAA]

Hi Recourse,

 

Unlike an informal Full and Final settlement, a Full and Final IVA has the same legally binding aspects as a normal contribution style IVA, but it just completes after 1 payment rather than after 5 or so years.

 

This means that he is legally debt free. Any debts that were included in the original IVA have been legally settled, with any unpaid element being legally written off by the IVA.

 

What's more, once the IVA had been agreed, the creditors lost their right to take any further legal action against him for the recovery of those debts. This means that any CCJs that were issued against him were done so in error and should be removed from his credit history.

 

All your friend needs to do is a contact the 3 main Credit Reference Agencies, send photocopies of his IVA completion certificate issued by his IP, to each of them so they can update their records. He should have done this when he received the certificate after his IVA finished, but it won't harm him if he does it now anyway.

 

He should also send copies of his completion certificate to any creditor claiming that the debt is still alive.

 

Once they receive notification of his completed IVA they will have to accept the debt no longer exists.

 

He needs to ensure that the IVA is the last notice on his credit history regarding those debts and ensure too that no CCJs are recorded after the IVA start date, as this would constitute a breach of the terms of his IVA by that creditor.