I have been on an IVA with Payplan for just over a year and have recently applied for a PPI, through Payplan, for which I was offered approx £10,000. Currently what's left of my IVA is approx £7,900.
I have spoken to Payplan and they mentioned that the PPI will go towards the IVA, but as an extra payment.
Would this be correct or is there a way I can use the PPI to settle the IVA.
The PPI claim will be paid to your creditors and will not reduce the amount you still need to repay by way of contributions unless you can pay your credtors in full. The PPI money is an asset of the IVA on top of your requirement to cover contributions, and should not therefore be used as a bargaining tool to creditors.
If you are struggling or do so in the future it may be possible to close the IVA down early with what has been paid to date. Having reclaimed the PPI and increased the return to creditors this would have a better chance of acceptance if required.
