I have an IVA and I am in the 4th year of it. I have just found out that I am owed £9500 from PPI. I have checked my contract and there is no "windfall" clause or "after Acquired asset" terms in my Arrangement. This has been confirmed in writing by my IP. However they are saying that The Agreement doesn't say the monies should go to me???? They say that I can't have the monies and they are going to call a meeting of my creditors to ascertain if they wish for my Arrangement to continue. How can they terminate my Agreement when I have not broken the Agreement? This seems to me to be financial blackmail.
If you disagree with your IP you could seek legal opinion but this could be expensive with no guarantee of success. Many IVAs have the PPI issue covered with the terms and conditions which are not part of the proposal.
HI Andy. I am afraid PPI is no regarded as a windfall nor as an "after acquired asset". It is regarded as an asset ( albeit an unknown one at the time ) and, as such should have been declared.
As Michael says above, it could well be, and is often the case, that this will be covered in the Standard Terms and Conditions which will probably be incorporated into your arrangement.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
It sounds very much indeed as it is an asset that existed at the time the IVA was entered into.
Think of it this way. Had you have received it prior to the IVA commencing then it is not unreasonable to assume that you would have used it to pay down the debts with. This is, essentially, exactly the same.
Regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
But as Andy says - how can they fail his IVA? He doesn't say he hasn't paid the PPI, he says he has just found out he is owed it. Therefore there is no reason, in my humble opinion, that the IVA can be failed at this point. Should he not pay the money over then that's a different matter (even thought I don't agree with it). But until he actually refuses to pay it over, then the IVA should continue on its course.
You just have to set your expectations that you will not benefit from any PPI refund and work with your IP. They hold the ace card at all times and can delay or fail your IVA if you do not comply
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by tinks81
But as Andy says - how can they fail his IVA? He doesn't say he hasn't paid the PPI, he says he has just found out he is owed it. Therefore there is no reason, in my humble opinion, that the IVA can be failed at this point. Should he not pay the money over then that's a different matter (even thought I don't agree with it). But until he actually refuses to pay it over, then the IVA should continue on its course.
Hi Tinks, the timbre of the original post is that "discussions are ongoing" and the impression is that Andy feels he should not comply with whatever his IP has suggested .... hence the threat of failure.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Many thanks for your inputs. They have really helped. I now understand that the PPI was an asset when I was granted the IVA. I have had a number of calls from my IP and I am now changing my tune. As my IP has the right to allow discretion I am trying a different approach. My central heating system is up the spout and I have no carpet on the stairs. I am now saying that the monies can be put into the Arrangement. But, I have requested about 2.5k and this would therefore aid the creditors as it would allow me to repair the central heating system and put carpet on the stairs. That way they get about 6.5k and the house is in good order for the valuation in the next year or so.
Again many thanks.
I was always sceptical about forums on the net but this has really been great.
Hi Andy, let's hope the IP sees the logic of that request. Yes, I agree, a failing central heating system will knock quite a bit off the valuation when that time comes around. You (or your IP) need also bear in mind that it would be inhumane to allow you to go through the next winter without heating and / or hot water.
Best of luck with negotiations.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Where the IVA proposal is not clear on whether the PPI was included, and both sides are really to blame when it comes to answering the question as to why PPI was not referred to in the proposal, I take the view that a 50/50 split is a reasonable stance.
I am aware that other IPs push out for the whole sum to be paid over, but struggle to see how this would reliably stand up if it were to be subsequently challenged.
