I have been checking on my PPI and I have been offered around £8k from a company who I was with in the past (not a company who I owe money to through my IVA)
I understand the issue that any windfall should be paid into the IVA, but after talking to my IP, I was told that there was a possibility that I could keep some or even all.
I don't expect a penny as I understand the rules and my responsibilities, but has anyone else been able to keep any PPI in the past? What were your circumstances?
Last edited by DCX1983 on Tue Mar 04, 2014 6:32 pm, edited 1 time in total.
Some companies, including Freeman Jones, allow you to keep PPI from loans outwith the IVA, in some circumstances, depending upon how the particular proposal has been drafted. The majority =, however, grab every penny.
By the way, PPI is regarded as an asset, not a windfall. Windfalls get grabbed every time
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I am with Freeman Jones.
So why would some allow me to keep and not others?
How is it classed as an asset? If I had a large amount of savings, wouldn't I be expected to pay these into my IVA?
It is an asset being something of cash value to which you have title or ownership prior to or during the iVA.
Yes, a large amount of savings would be expected to be paid in.
It is all down to how FJ have interpreted the PPI issue --- no one way of handling the whole saga is KNOWN to be the correct way as nothing has been tested in court.
On the face of it, and in my opinion, any asset such as this should be paid in. However PPI was not considered when many current proposals were drafted. I am guessing this is tied up a little neater in the forthcoming 2014 Protocol.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I am with Freeman Jones and was allowed to keep 5k ppi, would have paid it into iva but had to have a new roof. We were told as the ppi was from an old loan and not with a creditor included in the iva we could keep it.
I think FJ are very sensible in their thinking in my opinion. Things like a new roof etc., are vital and if this money is available then it helps the value of the property.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
Sensible, maybe, and very welcome, I am sure .... but I would love to know exactly what their line of thinking was and should they be toeing the same line as other IP's or should other IP's be doing the same as FJ ?
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
It is one thing allowing a client to retain monies to effect essential household repairs, but IPs do not really have discretion on this matter if the IVA is one of all-assets or the PPI money is specifically included.
IPs have duties to both debtor and creditors, and whilst it might seem a generous thing to allow monies to be retained, this ultimately would require the sanction of creditors unless the proposal provided otherwise.
Dealing with PPI claims as an IP is actually quite simple. The monies are either included into the IVA or they are not. If they are not, they should have been - but it is accepted that no-one has really done any wrong by not including them as it was not widely known until a couple of years ago that the potential to reclaim on grounds of mis-selling would have been so widespread.
We've had 3 ppi claims paid out, 2 during iva and 1 after and all have gone to creditors. I was advised by my ip that any monies paid out, even after completion can be claimed back by creditors. I just dont think its worth the risk of trying to keep it. Good luck to you in your iva as its well worth it.
