Can I keep refund from Payday ? I will be out of work for a couple of months.

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karen788
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by karen788 » Thu Mar 16, 2017 9:41 am
Hi

I am being made redundant on March 30th 2017. I have been offered an alternative role with an associated company so will not be entitled to redundancy pay. The new company have stated the background checks will take up to 8 weeks so will not receive a job offer start date until 1st June. This means I will have no income to live on for April and May. I am in an iva and have been informed by the financial ombudsman service I am due a refund from payday lender of 3400.00. can i keep this?
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Michael Peoples
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by Michael Peoples » Thu Mar 16, 2017 10:09 am
The PPI refund would likely be an asset of the IVA so paid to your IP. They may allow a payment break while your employment situation is resolved but it would require approval from creditors for you to retain any of the funds.
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Foggy
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by Foggy » Thu Mar 16, 2017 12:07 pm
As Michael says, the refund will be payable into the IVA and the IP would need creditor approval for you to be allowed to keep any (which might not be forthcoming. The easier option would be to agree a few months payment break -- which will be added on at the end as your IP,if willing, can agree that off his own back, assuming your agreement grants him the usual discretion to do so,
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