www.iva.co.uk

We're received a letter saying that we were miss sold ppi by one of our creditors [:)]
According to the letter they are offsetting the refund against our debt and sending a cheque to our IP for the remainder of the credit...

Does this mean they have written off the debt, as we've paid them so much over 6 years and doesn't the amount our ip have managed to claim off them (on our behalf) have to be spread over all the debts not just offset against their own debt?

What happens now as this company was our biggest debt and our debts will be below £10 thousand if they write off this debt? Can you still have an iva with debts less than 10 thousand?

All replies greatly received. Am only just starting to get my head around our iva.

Hi Claire.

It sounds as though the whole de3bt has been written off.

If you are in an IVA then it will continue but it sounds as though you may be able to pay all of your debts off in full before the arrangement ends.

Hi Claire,

You shouldn't have any problems with continuing the iva with a smaller amount of debt...everyone will be pleased you have been able to pay such a big chunk back!

You may even get early parole if you can pay everything back within a shorter amount of time.

Awww not as good as i thought it was, the miss sold ppi hasn't cleared the debt but has reduced it by half... though naughty Barclays have offset the miss sold ppi to their own debt then sending a cheque for hardly nothing towards my other debts!!

Allclear not happy with this arrangement as the miss sold ppi monies should be distributed equally between all the debts and not just offset against Barclays miss sold ppi debt, so guess the debt wont be halfed after all now...

Some ppi monies back better than nothing, all goes towards outstanding debt...

Will our IP change the amount we pay them or will we carry on as normal? Persume we carry on as normal, they are after all trying to collect as much of the debt back as they can.

Hi Claire,

Sometimes when claiming back money from PPI on an IVA you can claim a windfall of up to £500.
It might be worth speaking to your IP about this as if they have claimed it back for you I am sure they will be taking a fee for doing so.

Hi Claire, I did the same claimed PPI while on IVA, any money refunded to you or to IVA people is classified as a windfall and goes (after fees to IP and solicitors firm fees) back to creditors as an extra money back. I was lied from my IVA, they told me it will reduce my debt, even pay of my IVA sooner and if the claim is more then m y outstanding £2500 (which it was) PPI was £5000 I will get money refunded to me. It was a big fat lie. Now Im fighting with the IVA company to get this resolved. Because Im in my 5th year, nearly debt free. My complaints led to a creditors meeting taking place in mid March 2012 and they have put together an ultimatum if the creditors dont agree to the variation I have failed my IVA. I am absolutely in pieces.

Sorry to hear that Yani,[:(!]

My miss sold ppi isn't as much as the debt with them, so we're still plodding along paying the iva amount each month...

Will be soooo happy when we clear this debt in 5 years time... We've been on a debt management for 5 years, then our ip suggested now swopping over to an iva...

Is it normal not to hear anything from your ip provider? All they seem todo is take the monies and not let us know whats going on... Don't we get a statement showing how much is paid to whom and when?

It will never reduce your debt as you always owe 100% until the IVA is finished and then the remainder of the debt is written off. Any PPI claim will either go back to the original creditor or be paid into your IVA, either way the creditors get a better dividend.

In some circumstances it can shorten the life of the IVA if it means you end up paying 100p in the pound plus fees.

Yani - which firm are you with?

Hi Yani - it sounds as if the info your IP firm gave you was correct. PPI does reduce your debt and if the refund allows you to repay 100p/£ in less than the agreed term you will finish early and if the refund is greater than your outstanding debt, the balance after repaying the debt will go to you. Do you realise your outstanding debt is still the original debt plus fees minus any payments made during your iva? It isn't monthly payment x months remaining.

Yes, sorry. I worded that wrongly. It will reduce the debt but you will still owe 100p in the pound to your creditors until the end of gthe IVA.

Clare - you should get a statement each year once you have done your annual review.

I knew what you meant Jan! It's just I've seen two posts from Yani that suggest he/she may think the write off has already happened - one saying dividend of circa 35p/£ and one saying only 2.5k debt left to pay.

Thanks BOL!! Think I was on another planet when I wrote that!!!

A lot of people think the debt is written off as soon as you enter the IVA and of course, it isn't so.

I wonder if the IP companies actually tell them this? I don't remember being told it by Payplan.

I don't think I was told explicitly when the write off happens but it was very clear that I was to pay off as much as I could and that meant I could end up paying back more than the proposal estimated. So the implication was there.

I don't actually remember being told any of that but of course it could be that it just didn't sink in at the time.

I am sure my lot mentioned this, but, I admit it is already drifting off into the mists of time. They did also give me loads of leaflets, I'll dig them out and see if it's mentioned in those.