I had an IVA about 4 years ago.
3 years ago I was made redundant from my job and I was able to complete the IVA in full and have my certificate of completion.
Recently I have been advised by a third party that I took PPI out on a loan a few years prior to the IVA.
This loan was not part of the IVA but I did have a different loan with the same company as part of the IVA.
At the time of the IVA my supervisor checked all creditors for PPI and there was only one which was paid into the IVA.
The PPI compensation I will receive is not a lot of money in fact less than £800 but it will help me as I am job hunting and not in receipt of job seekers allowance.
My question is do I have to notify my IVA Supervisor of this little windfall.
I have read that a court case last year advised that once the IVA certifcate of completion has been received the individual no longer has to declare amounts such as these.
But I do not want to keep the money and then worry about it.
I am IVA free now.
When your IVA finished was it a full and final offer (lump sum of payments remaining) or a full settlement ( full debt, fees and possible statutory interest) ?
If it was a F&F the PPI belongs to the IVA unless the former IP declares they have no interest. If a full settlement the refund would be yours.
I imagine, in either case, the lender making the refund will want confirmation from the former IP or might just send them the money anyway.
Yes a Claims company did contact me.
I told them that it was probably not worth my while to claim because it would just go back into the IVA pot.
But at the time the Green v Wright case had
Gone in the debtors favour.
I rang my IP and he said he would have to get clarity as he was not sure and they did not get back to me.
The refund I am getting and the amount is after taking out the claims management fees.
I do not have debts even though I am jib seeking and cannot claim unemployment because I took a career break for 2 years to look after family.
The only debt I have is that I am a mortgage payment behind for the first time in 30 years.
The building society have been very understanding and allowed me to pay £20 a month off the arrears until I get back to work.
Ironically my mortgage is £820 a month and my PPI refund could pay this off.
Is it worth asking my IP Supervisor if I can do this?
Will they consider this as it is my home at risk. I suppose it is worth asking.
Ironically again the PPI refund due is from the same building society as my mortgage but they have not mentioned the arrears.
They have said I will get my refund direct to me in 28 days.
My IP has not contacted me since my query but I know now that the Green V Wright original decision was appealed and not now ruled in the debtor's favour.
I suppose if I tell my IP Supervisor that I have paid off my mortgage arrears with thr refund he will say I owe it to the IVA.
Had I been able to claim unemployment benefit my mortgage would be up to date.
I do not even get council tax benefit.
Just because I have not paid a stamp for 2 years I cannot get this.
After working full time for 37 years and getting certification of completion I am living off my savings now which are dwindling.
Sorry for long post.
Looking at my completion it says full and final offer and statutory interest waived
I understand what you are saying.
I had already factored in the amount the claims company would get which would leave the £800.
I know the law is the law regarding IVAS but it seems to me that even when your situation is dire and you are trying everything to stay afloat you are damned whatever you do.
I know it is irrelevant but what makes me really annoyed is that the PPI claim is for a loan which was paid off in full and was not even part of the original IVA.
It is also really unfortunate that at the time the claims company made contact with me
The court case Green v White had deemed that the individual could keep the money.
That is why I went ahead.
Then the case was appealed and upheld in favour of the IVA.
Wish I had not bothered now.
Thank you for replying.
I appreciate it
Well the wording on the meeting prior to closure says that due to redundancy I am now in a position to pay the IVA off at 100p in the pound.
It is therefore proposed that statutory interest be waived.
Also originally the proposal said that in year 4 the creditors would ask for me to release equity from my house.
As thrme IVA is now closed I assume this will not happen.
A little confused by the following wording
As of the date of this report the anticipated dividend, excluding the fourth year realisation from the property is 91.51p in the pound. Naturally I am duty bound to investigate the potential for any equity release per the terms of the proposal and will revert back to creditors in due course.
That makes me worry unless she means if they did not accept the proposal.
She then says it is further noted that any successful PPI refund will result in an increase in the dividend time.
Bearing in mind that all creditors in the IVA were checked for PPI one successful claim was paid into the IVA.
This PPI claim was for a loan taken out 13 years before the IVA and repaid in full.
I am afraid you will have to bite that bullet and ask directly. Considering the size of the refund your former IP might just feel it would be uneconomical to dig out old files and calculate a supplementary dividend distribution.
Just tried to call but in a queue and they are in Scotland.
However having just done some maths from what I have worked out I did pay in full.
I started out with 13 k debt and paid off 6k in 3 years.
The balance I paid when I paid early works out as the remaining full balance plus fees.
And the interest was waived.
With a bit of luck...
Will call them
I have just worked it out.
I started with just under 13k debt.
I paid 6k off over 3 years.
I was able to pay early due to redundancy.
What I paid was the full amount owed and fees and the supervisor waved the interest.
The PPI refund I am getting is small and from a loan I took out 18 years ago!
And that loan was repaid in full and not included in my IVA.
I am just going to call them and see what they say.
I have 1 months mortgage arrears and this money would clear the arrears but I will check with them first
Who is onlineUsers browsing this forum: No registered users and 68 guests
Ask the IVA Experts a QuestionSimply complete form and you will get an answer from our IVA Experts (multiple replies within an hour *)
* Any use of this forum is conditional on you having read and agreed to our terms and conditions.
* If you enter your phone number, Vincent Bond and Co Ltd will give you a courtesy call to ensure that your question has been answered.
* The question will be posted on our forum, we will email you the location