Reclaiming PPI whilst in an IVA ?

[Jamie.73]

Hi I am interested in getting opinions with regards to reclaiming PPI whilst in an IVA. It seems the benefit to myself is nominal but I also beleive that any potential income for the IVA must be maximised. I also understand that although I will not benefit directly it reduces the overall date?

Is this the case and what do you think about this?

[artemischild]

Hi Jamie

anything you get back from a PPI claim would be paid into the IVA under the windfall agreement, this would mean you give a higher dividend back to the creditors than initially planned, however it would not reduce the term of the IVA unless it meant you had paid 100% plus IP fees prioir to your final payment date.

hope this helps
Arty

[Jamie.73]

Thanks for the info. So should I go ahead and let my IP investigate. As I see it the only real benefit for me is my overall debt is reduced should i default at some point

[artemischild]

It depends who your with, some IP's are requesting it before the IVA closes, some are using a certain company to process all the PPI claims for their clients, others are doing themselves then just paying the money over (This method you tend to get more back as your not paying the usual 20-33% ppi agent claim fees)

However if this is paid in then further down the line you default etc it does not mean you can then miss 2 months of payments because 1K ppi payment went in, that will have no over all affect of the length of the IVA nor how much you pay each month.

best wishes
Arty [:D]

[kallis3]

Your overall debt may be reduced by the amount of the PPI but if you default then interest and charges will start to be added again once the IVA fails so you would be no better off.

Your monthly payments would continue as normal until you either reach the end of the IVA or you manage to pay back your creditors in full, whichever is the soonest.