Morning All
I was wondering if anybody on the forum could answer a quick question for me ?
I have 5 creditors in my IVA, each was to receive 40p in the pound as stated in my agreement.
However due to my IVA wording (each creditor if returning PPI, has the money deducted from there debt first) after I received a large refund of PPI from Lloyds, they received the bulk of the money (after fee's and my interest) which brought there amount paid to 93p in the pound.
The other creditors are still on course to receive there 40p in the pound, or more as I was told that since Lloyds are now above the 40p, they will not get anymore of my regular payments until the others catch up, which will of course mean each other creditor will get slightly more than there 40p.
Still with me ?
So here's my question.
What is the money that may have to be released as equity in my 5th year actually for ?
Is it to cover the difference between the proposed 40p in the pound and 100p in the pound ?
Sorry the question was a bit long winded
