I am in my 5th year just been told that 1 year to go which expected but I have been told that my PPI payout is just given to the creditors and does not come off the amount owed he said they just divide it between them and dont count it in I have received #11,000 in PPI payments The initial debt was 14,000 we have paid 11,000 over the five years
PPI will be distributed between your creditors and you will always owe the full amount plus fees and possible statutory interest until the IVA is completed.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
What they mean is that it doesn't reduce your payment, in the usual scenario and just increases the amount the creditors get. However, if the PPI takes the amount you have paid over the full original debt, plus fees and possible statutory interest, then the surplus wil be given back to you.
Don't forget that, of the PPI amount quoted, about a third will disappear in claims company fees and never make it to the IVA.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
It sounds like although the PPI will create a dividend for your creditors it will not pay the full debts and interest and costs etc back as Foggy pointed out so you still have to continuing making your payments.
my initial debt was 15,524 of which 14301 have claimed up to now, at the end of year 6 (we could no get a re mortgage) we will have paid in 18,200 aprox plus 7000 in ppi aprox 26,000 no probs with that we have never tried to welch but they are now telling us we still have to re mortgage using one of their companies
You can't remortgage - it will be a secured loan but do check your paperwork to see if it mentions that - if not then you do not have to do that.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
By my very rough calculations you would need to pay c£26k to pay off the total debts plus statutory interest plus (assumed) 15% costs if you have standard terms so you could be close to pay everything off in full a which point your payments will stop.
Check your terms to see if statutory interest is payable and what your IPs costs are.
The last Annual Report would be a useful guide to see what the figures are too.
AS AT MAY CONTRIBUTIONS 11,830
ADDITIONAL INCOME CONTRIBUTIONS 696.53
PAYMENT PROTECTION 7815.62
AGREED DIVIDEND 32%
ESTIMATED DIVIDEND 94%
DIVIDEND PAID TO PROVING CREDITORS TO DATE 77.7
I HAVE WORKED OUT FOR YEAR 6 I WILL PAY 5,646 ESTIMATED FEES 1,800 PLUS 450 TO COVER EXPENSES WHERE REQUIRED
EST TOTAL AT APRIL 17 25988.15
So how much would you expexct the remortgage to be probs wont get one we run pubs on a temporary basis we could be out of a job at any time and when would I do what you have suggested at the end of it all. I just dont understand why 6 years it says six years if we cant get a mortgage and not both
It was due to finish April this year. Carry on for 6 years if could not get a re mortgage. Went to both mortgage companies but they turned me down It did not help that nobody would give me an amount to re mortgage even the lady at the mortgage company was flabbergasted and she spoke to them was them told finished in August this year. Then was told they didnt know where August had come from it would end April 2017. They would be putting me in touch with a company they use called source or something and they would find somebody who would re mortgage my house so six ears and a re mortgage. (not what I was told)
Check that it is not a secured loan - the interest rates are usually sky high and if you don't have this in your paperwork then just carry on for the extra 12 months.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Many thanks for your advice. I will just carry on as stated hopefully it will all work out I have never tried to welch on any dett it just seems a tad much. I have looked where you are and my daughter who is in the navy lives on St Austell Road so if towards the end if I am still worried it may be worth the expence of getting legal advice from you. when we visit that beautiful part of the country. Once again thank you
so either your payments will stop in April 2017 or if you can get creditors to waive their right to interest etc and get the figure reduced you might be able to finish it sooner.
