Advice req'd

[5yearsandcounting]

Been accepted for an IVA this July, with debt of £32k.

a while back contacted one of my creditors regarding mis-sold PPI, and finally got a reply today offering me a refund of just short of £15k.

of course i contacted my IP, who said they will recieve the refund and i'll get £500, so i asked if it would affect my IVA payments or length of time i'm on IVA, but the IP say I will continue with my monthly payments and for the same amount of time???

I'll end paying more than i owe, is this right?????

[Foggy]

No, that wouldn't be right. You will always owe the full amount of your debts until the IVA concludes. With this PPI payment you will, in all probability, pay back the total debt plus IPs fees earlier than the 60 months, in which case it will conclude when that sum is reached.

[plasticdaft]

How much are you paying a month?

Paul

[kallis3]

I agree with Foggy that you will probably end up paying it off a lot sooner than the 60 months.

I'd just double check with your proposal to see if you are going to be able to keep the first £500 - some of us have to pay the lot over.

[Shining]

IP fees, sometimes statutory interest, will need to be added to original debt and when that is paid then the IVA will conclude you will not pay more than the original debt of 32k.

[5yearsandcounting]

How much are you paying a month?

£350.

I have now spoken to my relationship manager, who says she will need to speak to an IP and seek advice.

[footiemad]

I'm no expert here but I imagine you probably will have to continue for the full term because if your monthly payment is £350 x 60 = £21,000 plus £14,500 PPI that equates to £35,500 - £32,000 original debt which leaves excess of £3,500 which will probably cover some of the fees etc.

[5yearsandcounting]

I forgot to mention even though my debts totalled £32k, the IVA was agreed that I paid back just £21k.

[Shining]

The total of the debt is always payable as it may be that you come into a windfall or receive a substantial payrise etc., the 21k would be the amount paid I assume if you pay no extras in x

[kallis3]

Agree with Lesley. You will always owe the full amount to the creditors plus fees.

[flumpy dog]

im no expert 5 yrs and counting but you'lle probably end up just recovering your whole amount that you originally owed

[kallis3]

I think you may well end up paying the whole amount and that's brilliant!