I have recently completed my IVA and have the completion certificate. I was written to by the company who we have a secured loan with (who we have no outstanding debt with but were part of the IVA as the loan is secured against our house)informing us we may have a claim for PPI. We made a complaint and they have offered to remove the interest dating back to when the ppi was taken out. they have also offered a cash sum of the amount the ppi cost asking us if we want this as a cheque or to come off the loan. As we have completed our IVA do the creditors that we defaulted with have any right to this money? I ask this as we have to send the company details of the completed IVA can this company then contact our IP practitioner to inform them we are getting this or is the completion certificate enough for them to release the funds to us?
It is possible that the PPI mis-selling claim represents an asset which was automatically included into your IVA, and which should therefore be received for the benefit of your creditors. Given that you have to provide details of the IVA company to the secured loan company, they are bound to check this out - so personally I would wait for their decision, and then question it if you feel that you are being unfairly treated.
I'm sorry but this baffles me when does the IVA actually end?
There's going to be a lump sum coming off our secured loan, which ultimately could leave us having equity in our home. Does this mean the creditors who've agreed to the IVA settlement and given us a completion certificate can make us also re mortgage to get more money from us?
I thought our woes were behind us getting the certificate but it seems not.
If I chose the option to pay the lump sum of the loan instead of taking a cheque then how would the old creditors from the IVA get the money as it wouldn't be physically there for them to have.
The IVA ends when your supervisor issues a certificate of due completion, however in the event of a continuing trust - which is the norm these days in IVAs - any unrealised assets remain within the scope of the IVA and this would potentially include a PPI mis-selling claim.
If the sum is off-set against your secured loan, the increased equity would not in my opinion be grabbed by the supervisor, but only the specific terms of your old IVA would be able to confirm this.
Thanks for your replies Melanie, from what you're saying to me I've probably got two options as I'm damned if I'm handing over any money that is due to me now I'm out of the IVA. I adhered to it fully whilst I was in it and my husband worked hard to earn overtime which led to us paying well over the dividend agreed at the start of it all.
I can either tell the company to take the amount off my secured loan or I can not bother replying to the letter and let what's due to me dwindle into the night air.
It would kill me to not reply to them as it was this companies debt that lead to us not being able to fulfil the unsecured debts we had run up ultimately.
But if that's what's got to happen then so be it as I was lead to believe a completion cert meant we didn't have to bother with all this hassle any more, clearly I was wrong!
Contacted my old IVA company and they say because the PPI claim is through my mortgage and not one of the unsecured debts that was written into my IVA, they don't know what will happen with the money if I take it as a cheque.
Thanks for that advice!!!, how can it be so unclear surely it's either yes you can have the money or no we'll want it.
This is so frustrating I thought all this hassle was behind us but I was sadly mistaken.
Glad to see you moving on Becky - and if your former IP cannot give you a straight answer to a simple question, I would get the suntan lotion purchased now!
