Happy to say that I've just had an email from Grant Thornton Closures to confirm that as of today, my IVA is officially closed. I don't know whether it was all the shouting and screaming and chasing, or whether it would have just naturally happened, but I wish everyone else all the best in getting their IVAs paid off and closed.
The feeling of relief is immense, and I'm glad I can now start to get my life back on track. It's been a long hard road, but many valuable lessons have been learned.
I will still pop onto the forum from time to time no doubt to ask for post IVA advice
Michael, you may be able to help. Re PPI, I was told that although the bulk of any PPI payments would actually be paid into my IVA, I would be due any interest accrued. How does that actually work, what is the interest calculation, who do I chase for that (because I know for a fact that Lloyds at least have agreed a settlement of over £6000), and what are the timescales?
I cannot speak for other firms but we repay 40% of the simple interest less any tax deducted at source. If the client is a higher rate tax payer we will pay 45% and this basically leaves the client with sufficient funds to clear their HMRC liabilities.
I hope this helps but not sure about everyone else.
The PPI refunds include interest at 8% per year simple interest which is actually a taxable income. That is why we rebate 40% to ensure that the client does not end up with a tax bill they cannot pay. The rest of the money goes into the 'pot' for distribution to creditors and is not our fee.
Simple interest means 8% added to the capital for each year but there is not interest added to the interest. Therefore a PPI reclaim of £100 with 3 year's interest means a settlement of £124. We would send the client back £9.60 whioch covers their liability to HMRC.
Ok so essentially what you're saying is there will be NO actual "winfall" amount paid back to me, but rather a minimal amount which ends up being paid back to the tax man anyway?
I've got an Aqua card with £250 limit just to start rebuilding my credit history, and might look at a car lease sometime in the new year. Acutally feels weird to say things like that. I'm definitely never going to make the same mistake again, feels like I've lost 6 years of my life and have nothing to show for it. Onwards and upwards
