ppi pay IVA early..?

[17 months to go]

Hi, I have between £8-9,000 left to pay of my IVA over the next 17 months. In November last year I applied for a PPI rebate which I am due to receive next month in the region of £6,000 which I have been told will be paid directly into my IVA. Will this finish my IVA earlier than the original date of September 2013?

Many thanks.

Colin

[kallis3]

Hi and welcome to the forum.

Unless this PPI will pay off your debts in full then I'm afraid your IVA will continue until you either pay your creditors in full plus fees or your IVA runs the distance.

[ginger3232]

Colin - the PPI money is likely to increase the amount to creditors get - you IVA will normally continue as normal.

Until your IVA is completed - you will always owe the full amount of debt.

Well done for getting this far !! - not long !!

[17 months to go]

Thanks very much for the quick response but when you say the full amount of debt is that the original amount of debt that we owed with interest included, or the £9,000 that is left to pay?

[kallis3]

It's the original amount you owed to the creditors when you went into the IVA. The interest would have been frozen at that point.

It's not the amount you agreed to pay in the IVA.

[17 months to go]

Sorry if I am appearing stupid here, but when we started the IVA we owed between £28,000 - £30,000. We now only have £9,000 left so if we wanted this IVA to finish, would we have to find the £9,000 to finish it, or would they take the £9,000 and we would still have to carry on paying until September 2013?

[ginger3232]

The PPI - is usually seen as an asset - so its over and about your normal monthly payment..

The amount you owe + IVA fees and any interest added - if you have PPi award that amounts to more than all this then your IVA would finish early

[17 months to go]

thanks very much thats exactly what i needed to know.. [:)]

[kallis3]

Is the £9000 the amount for the IVA or the total amount you owed the creditors at the start?

[17 months to go]

the £9000 is whats left,at the start it was 28,000

[ginger3232]

9K + fees + interest = ?? 16K - this is why despite PPI the iVA wont finish early

[17 months to go]

oh i see..17 months it is then..

thanks very much ginger3232 and kallis3 very helpful [:(]

[ginger3232]

disappointing!! - but your nealy there - as at least you know you payed back the full amount and a bit of fees etc - thats something to be proud of !!!

[17 months to go]

one more thing,how is the fee and interest paid after the IVA has been paid because the monthly payments i pay cover just under £9000? i was under the impression the fees was included in the £9000..

[Broke of London]

The fee is included in your monthly repayments. You can't repay 100p/£ unless you have repaid your debt plus fees.