www.iva.co.uk

Could somebody please give us some advice on the foolowing issue, we have been in an IVA since 2009 and in our original proposal it was agreed that the PPI from first plus would be paid when it matured. This was duly completed, i lodged complaint with First plus on how the loan was sold and this has taken two years but they have responded with an offer of either a lump sum of money or reducing the loan amount thus reducing our monthly payments, the offer states they have accepted our complaint of mis-selling and my qustion is does this constitute a windfall or an asset, obviously i would like to reduce the loan amount and pay the diffrence into the Iva, or accept the windfall and offer this as full and final payment any advice would be appreciated

Hello and welcome. I think you will find that as this is an clause of your IVA, it will neither reduce the loan nor be available for a full and final. You will clearly need to check with your IP, but my understanding of the proposal is that it is required to be paid into the IVA for the benefit of all creditors and may actually form part of the originally proposed dividend. Again, as this is case specific and I don't know the full details of the IVA, it would be best to check with your own IP.

Thanks for the advice but if they do take the full amount then i believe iT to be unfair, first plus have offered two scenarios, one accept a lump sum or two they will put the loan back to its original state pre ppi. This would never have come to light had i not complained and we have already paid the creditors the full amount of the original PPI this payment is offered as upholding a complaint is there a governing body that regulates Insolvency practioners.

Hi llewey,

I'm afraid I'm also going to agree with kaykay on this. If the PPI was a condition of your proposal then I don't think you have any option other than accept the money from first plus and pay it into your IVA. The only person that can give you complete clarification on this is your IP, so I would advise you speak with them ASAP.

Good luck x

Your IP will be best placed to offer case specific advice and I would talk to him/her about this.

This whole fiasco is becoming an absolute nightmare for many i think and because it is such a grey area it appears that many companies have differing ideas of what they can and can't do, sadly it is us that are being caught up in the crossfire as we are not experts in the field either. I would certainly contact your IP and let them deal with this, that way it won't come back to bite you at a later date, good luck and best wishes. xx

I think what I would do is speak to your IP regarding using the PPI claim to put your loan back to what it would have been, this would be the best case for you to reduce your monthly repayments and the creditors would still benefit as your IVA payments would increase.

I don't think PPI would have been a condition of your proposal back in 2009 anyway.

The thing is, what you have to think about is, if you weren't in an IVA and had this money as a bit of a windfall, you would still have your debts you would be having to make payments on in full so it's highly likely you would have used this money to pay some of them off anyway, it's no different to having to surrender it to the IVA.

Hi all and thanks for the advice will speak to my IP and try to explain it so all parties can benefit from the payment, i just find it hard to get my head around that the original proposal for the PPI has been paid and this only came about from a complaint that i fought myself, the ideal scenario would be for the amount to be taken off the loan therefore reducing the payments so the excess can be given to the creditors and when we finally finish the IVA life can be a little easier i also find it difficult that an offer which i initiated so was therefore not avaialble at the time of the proposal could be deemed an assett when it was never there in the first place.

I think it's similar to if you suddenly received an inheritance llewey1970, although that wouldn't have been available to you at the start of the IVA it would still be captured by the IVA if something like that happened during the term.

Don't forget that PPI is classed as an asset rather than a windfall.

Hi All, there is some very good advice on here. But, check the assets clause of the proposal and any modifications. If it is an all asset clause then the PPI will be an asset in the VA.

Basically you have a damages claim against the seller of the PPI this means they must pay you back, or as in this case off set it against the amount due. So the 'cause of action' the damages claim, if in existence at the date of the VA means it is an asset.

Unless the proposal allows the PPI company to off set, which is highly unlikely, it will need to be paid into the VA in full and distributed equally amoungst your creditors.

It probably isn't a windfall.

If this is not clear, message me. Sam

Sam,

Unfortunately, until you are an expert then nobody will be able to send you a message unless you contact via Frugal Friends link.

In IVA Protocol IVAs, there is a right of set-off afforded to all creditors for the repayment of monies effected by creditors. This may be subject to a challenge in the future, but my own legal advice from a highly reputable and expert insolvency barrister is that this may well be valid and is possibly the best way forward for all parties concerned.

In your case you would effect a reduction of the loan balance due, and probably benefit from reduced monthly payments.

Could Admin not give Sam the expert status as i'm sure that Melanie and the one of two other IP's who post on here would welcome another.

I think this is being sorted out via Andy as there are certain criteria to be met. There have been a few possible experts posting recently - be good to have them aboard.