The general feeling, now, is that PPI is an asset and, as such, is payable into the IVA.
Some IP's are treating PPI refunds slightly differently, with some being allowed to keep any interest element, some keeping £500 and most getting to keep nothing.
Only your own IP can tell which line he or she will take.
Last edited by Foggy on Sun Jul 20, 2014 3:26 pm, edited 1 time in total.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
That is a decent PPI award, I wonder if that would have made a difference to you into entering in the IVA in the first place £12000 is a good full and final settlement for many who are not already in an insolvency solution.
I think, Major, that scenario might apply to quite a few -- I have seen some pretty impressive PPI refunds (far in excess of what the original creditors sell debt on for ! ).
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
hello foggy, I finished the 5 year period though. They still extended the IVA for another year and now they get the £12,000??? I don't think that's fair.
Hi Errolyn. During an IVA we always owe the full amount of original debt plus fees and possible statutory interest, and have to continue payments until this figure is met or the agreed term is concluded.
Have you had your completion certificate yet ? If not the IVA is still active and you are still bound by its terms.
As long at the monies you have paid in, including during the extension and the PPI refund are less than or even close to 100% of your full debt you are still ahead because you have not been paying (often scary) interest for the last 5 or 6 years.
You might not feel it is fair having to hand over these monies, but, to plays devil's advocate, I am sure the creditors are a bit miffed at having tio write off a chunk of the money you borrowed along with the interest. It's a compromise on both sides.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Foggy provides a good reasoning for ppi to be added to the iva pot.
It is a hard fact and most ppi's are paid into the iva pot for creditors to benefit from .... we all borrowed / spent the money with intention of paying it back fully ...
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
I totally sympathise. I think these adverts that state "get 70% written off" make us believe the creditors are going to lend us huge sums and take a pittence back. At the end of the day they will aim to get the maximum possible return. Hence 100% of windfalls/assetts and the 10/50/50 rule with overtime and bonuses. And in some cases 12 month extensions where equity in property is available. Anyone who says an IVA is easy has never been in one.
