PIA Clawback

eyesgreen_1

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Hi,

Completed a PIA insolvency In regard to a buy to let property that was sold in agreement with the bank. The shortfall debt was the main debt in the PIA. My own home mortgage was not in arrears at the time.

Am I right in suggesting that the 20 year clawback rule would only apply to the buy to let property which was sold and has no bearing on my own home.

In other words I am free to sell my own home without any fear of a clawback claim from the main creditor.

many thanks
 
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Section 103 of the Personal Insolvency Act 2012 incorporates a claw back provision in all PIAs, and applies to any "secured" property retained by the Debtor. The clawback only comes into operation if any of the secured debt was written off in the PIA.

If the BTL was sold, then there will be no clawback in respect of that property.

As PIAs are complex legal documents you should really consult with your own PIP for advice about selling your family home.

Jim Stafford
 
Hi Jim,
Thanks for your reply. And thanks for your advice back when I was trying to figure out my options around 2014/15, your help and solid advice back then was invaluable to me, and was much appreciated.

Unfortunately my pip advisor is no longer in business, I’m still trying to find a new contact for him so that’s why I posted on AAM. I do remember clarifying with him at the time that my home was not affected by the clawback clause. But I just wanted to have another conversation with him to be absolutely sure this was the case.

I do know however that there was no write-down of debt on my family home as it was not in arrears and my mortgage repayments we’re fully up to date.

There was a credit card debt with the same bank as my home mortgage which I presume does not have any clawback attachment either from a proposed sale of my home.

( This credit card debt was previously written off by the bank anyway in return for me agreeing to leave the bank as a current account holder and customer, but the pip included it anyway in the insolvency agreement).

I rang the bank yesterday to see if there would be any breakage fee if I did sell and pay mortgage off early and they did ask if I was going to sell the property or get another mortgage etc. and I did get the sense that they were quite interested what I was planning to do, but it could be just paranoia on my part, ( that being in debt feeling never leaves you).

My main concern is obviously any clawback claim in regard to the sale of my PPR.

Kind thanks
 
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Update: I contacted and received an email from my pip in regard to this, the main thrust of his response qoutes:

“there was no write down in the PIA in respect of your family home. Therefore there is no clawback or any other implications for you if you were to sell the house now.”

Hope this thread is informative to others in a similar situation.
 
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