Coming to end of IVA, I've paid 60 payments as required, 50% of all overtime earned over past couple of years and PPI of x amount. IVA have only calculated the 60 monthly payments and when I asked about the PPI & Overtime apparently this gets paid into 'the arrangement' but does not reduce the amount owed. Where does this go then ? I would not have worked all this overtime if I knew it wasn't reducing the amount owed.
Confusion of terminology -- what they mean to say is that it doesn't reduce the amount of IVA payments you have to make, but it does go towards paying back the original debt to creditors (less fees).
So, if the anticipated IVA payments over 5 years, totalled say £25K, and you had a massive PPI refund of £20k paid in, it doesn't mean you have only the other £5k to hand over -- it means the creditors get more of the debt repaid.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
You will always owe the full amount of your debt plus fees and possible statutory interest until the IVA is completed.
PPI will go towards that as it is an asset and if it pays off your debt in full then anything left over will be paid back to you.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I agree with you both. I wasn't expecting my payments to reduce and I was still expecting to pay 60 monthly payments, which should be my last one this month. I don't agree that I've only paid the 60 x monthly payments and they have not calculated the O/T or PPI into this. So instead of only paying off for example £32,000 I should have paid off £52,000. It came about when I asked when will they let me know about my last payment to be told, "you still owe us more" !!
Do you have a property with any equity -- there might be a 12 month extension to ride out ? If no then, after the agreed 60 payments, you "owe" them nothing more, apart from any PPI outstanding.
The other, less likely, scenario is that the IVA has been extended for some reason.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
