Hi,
I have just started year six of my IVA due to having over £5000 equity in my home. My total debt was £21,000. By September 2017, I will have paid nearly £14,000 of this. l have just received notification of a PPI paying £7,500 if I agree and they plan to give this directly to the IVA company. Is it legally correct that they are due the entire amount? Also, they have agreed in principle to end the IVA if I pay £2000 (via a loan from my mother) so that I can go back to the employment I had previously, where I cannot currently work due to the IVA.
PPI reimbursements are added to your iva pot to benefit your creditors with a higher return. You will always owe 100% of your original debt pre iva agreement plus fees and possible statutory interest, not just what is agreed at your iva hearing. If you reach your original debt plus fees etc then no further paymemts would be paid and any money remaining would be yours.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
Yes, it is legally correct that PPI all goes to the IVA estate. This will happen, even if you pay the £2000 as a full and final, as the total amount paid in will still fall below 100% debt plus fees and statutory interest.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Regarding the employment aspect, your credit file will still show IVA until the 6 years are up and most companies now ask have you ever been insolvent if you are applying in the financial sector. It will not matter that its complete some companies still consider having ever had an IVA you are a risk and not somebody who has learnt their lesson and manages their finances better than people who have never experienced having to live of such a tight budget as an IVA requires. Good luck with what ever happens.
