Cost of living/New I&E figures.

[Kelly O]

How much debt do you have at the moment?

[PennyJPitstop]

approx £18k

[PennyJPitstop]

3 previous loans of £11152 and cards £7462 securred with High Street lenders...

[Kelly O]

It may be that if you successfully reclaim PPI your debts will reduce to the £15k threshold and you could then do a DRO.

I suggest you write to creditors offering them a token payment of £1 per month each for 6 months while to reclaim the PPI.

If it turns out that the debts are still over £15k after any PPI refund you may have to think again

[PennyJPitstop]

Even though I have a failed IVA? The majority of the cards are Max Recovery, no further details? How do I locate the relevant details.

Thanks, this sounds a better idea.

[Michael Peoples]

Max Recovery will have bought the debts from the original creditors who therefore cannot claim offset. You will need confirmation that the 'trust' was broken when your IVA was failed otherwise the right to recover the PPI could still remain with the previous IP.

If you do reclaim the PPI you could use the funds for a one off IVA which Max would almost certainly accept. If you petition for bankruptcy the right to reclaim the PPI would belong to the Official Receiver provided the trust was broken in the IVA.

[PennyJPitstop]

Sorry I do not understand 'cannot claim offset', these were credit cards with banks I was with so do I apply to the banks of these credit cards if I know the details, or Max Recovery?

Thanks

[Michael Peoples]

You apply to the card companies who sold you the PPI not Max who only bought the debt. The fact that the credit card company sold the debt means they are owed nothing and therefore cannot offset the PPI claim against any outstanding balance.

[PennyJPitstop]

Thanks for that. One last question, will Max Recovery have the credit card owner details if I present them with the IVA reference allocated to them?

[Michael Peoples]

Probably but your former IP should have the details if you are stuck.

[PennyJPitstop]

OK thank you all very much, makes it clearer what decision to make and hopefully will get somewhere with this scenario!