Surely PPI money should be deducted from the total ?

[Peter.n]

I am currently in an IVA, PPI totaling approx £12,000 recovered, but I'm told this will not reduce IVA term. I surely agreed a contract in court to repay a set amount surely the PPI money should be deducted from that total especially as the companies I am repaying took it from me illegally in the first place.

[bridgey]

The original contract would have been a certain pence in the pound (20p, 50p, 75p etc) repayment - based on a certain term, usually 60 months. So;

Debt - £10K
Repayment - £5K
Pence in the pound - 50p (or 50% repaid)

If a PPI payment is received, it will just increase the amount you repay to Creditors.

If the PPI payment takes you over 100% of the debt, plus fees, the IVA should end.

That ^^ is my interpretation, anyway...

[Adam Davies]

Hi

Good answer from Bridgey

Extra monies received just mean that creditors receive a larger dividend

You still owe your whole original debt going into an IVA, it is only at the end that any unpaid debt is written off

Regards

[Foggy]

The object of an IVA is not to pay a set amount, rather to pay as much as is affordable over the term, according to the agreed terms and conditions. Those terms and conditions allow for the payment of extra funds ( overtime, bonus payments, windfalls and assets)to increase the repayment to creditors.