www.iva.co.uk

Anyone can help please, I am in my last year of an IVA and recently asked IVA IP to review my case after receiving (IP received) £5k on my behalf for a PPI claim. He has arranged a creditors meeting to try and get a variation 1. creditors will accept lump sum (meaning all I paid until now + the PPI) and IVA is completed. Or 2. they will not agree and I fail the IVA. reason for this is my complaints regards their procedure of getting me to sign the attorney to claim PPI on my behalf, when it has clearly no benefit to me and its apparently a windfall. Even though I was advised that it would reduce if not finish my IVA. I am now looking to take my case to ministry o justice, as im not happy at all. Any advise on what the creditors would or wouldn't accept? lets say the difference is £1000 less then if i were to finish the iva. Would they accept it or decline this? Thanks

They would be entitled to the ppi refund as a windfall anyway. Remember you owe the full amount of your debts until completion,only then is any written off. With the ppi are you returning 100p in the pound?

Paul

Yani - unfortunately - the aim of the IVA is to pay back as much as you can afford - in the process if you come into money (ie PPI) normally you will be expected to pay this in, to increase the amount paid to creditors.

You need to remember that you owe the whole amount of money + fees - until the end of the IVA (not the amount stated as pay back on your proposal)

I can understand why you are upset - but i personally dont think you have a case for complaint

hi, the reason why I think I have a case to complain is because I was miss advised in somebody else benefit to claim the PPI on IVA, should I have been explained further the truth behind it. Example if you wait till after you IVA (which is in Sep) you can claim the PPI and the monies is yours. And I have not been explained that fully. well the creditors agreed to 35 pence in each pound to be returned. The offer is 29,13 pence. Not sure if its close enough or not. I do not want to fail the IVA and now Im pretty scared I have been given this ultimatum.

Yani - this is your responsibility to find out the facts - your IP/IVA will advise you - but at the end of the day - YOU have to take some responisibility in finding out the information. Your proposal would have informed you of the likelyhood of Windfalls and what would happen if these were obtained during the life of the IVA.


If the creditors refuse to end the IVA on the settlement figure - it is likely to just carry on as normal - with you making the monthly payments

Surely you are not contemplating deliberately failing your IVA over the windfall PPI refund? If you were mis sold PPI then the creditors should be entitled to this as an asset and maybe you have just not understood the facts of this. You can't say you will claim it once your IVA completes so you benefit and not your creditors.

Hi,
I think you misunderstood, my intention is of course to pay of the IVA. Anyway thanks for you advice.

to Merlin, please note that I am very close to finish my IVA.

Hi Yani,

unfortunately PPI is an asset for the benefit of your creditors. You don't really have cause for complaint, particularly as they are writing off two thirds of your debt.

Even if it wasn't a point of law, to let your creditors write off debt and then take more money from them is a bit greedy.

Broke of London, I am not asking them to give me any money,IVA is a service to end users as other services. It benefits me and the creditors and mainly IVA companies. So this is a negotiation. Perhaps wait til you nearly at the end of the IVA, it is very hard. So you would look at possible other option. To everyone on IVA I would advise to go bankcrupt, as Thats what I should have done years ago, or not even bother going through IVA and talk to creditors personally. You can achieve the same as them, cost free.

Yani - IVA's do work for many people, so does Bankruptcy or a DMP. Luckily there is more information available now for people to make a reasonable judgement as to which route they should go down.

Unfortunately, negotiating with creditors does not offer any protection and they can withdraw from an agreement at any time.

I hope you can come to an agreement with your creditors via your IP and end your IVA. Good luck from me.

Negotiations usually take place at the point of sale, not after the product has been consumed as in the case of people applying for ivas. So actually, we are asking our creditors for money...we are asking them not charge us the costs we agreed in the contracts we signed. Everyone's IVA is hard but I wouldn't say it is the wrong choice for everyone.