hi there, i really hope you can help me im on my last eight months of my iva i owe around 1,600 ....the company im with came to me regarding ppi insurance and that they could help me get it back via their solicitor and it would be in my interests to help where i could so i did sighning where relevant ect i recently recieved a cheque for just under 3,000 so i thought brilliant iv nearly paid my iva so hopefully when calculated this would pay it off i wasnt interested in anything back but i chatted to one of the members of my iva that it would be possible i could recieve some monies back but they didnt deal with the ppi and would put me through to another department, anyway i had a phone call today telling me it would not go off my bill and they had to pay the creditors back with that money ???? what i dont understand is if the agreement was set and my bill is nearly paid how come they have to give them more and surely it would be in my interests to of sought ppi after id payed the bill please can you make some sense as im at a loss why they made it sound like it would help me ....when it cleary makes me feel robbed thankyou for your time Tracey.....
Hi Tracey. A PPI repayment is classed as a windfall and, as such is payable into your IVA for the benefit of the creditors, increasing the dividend. Although the end result is that you have paid back more than originally planned under your IVA, you have not paid back more than you owed as the full debt, plus interest, is always owed until the IVA is finished. Only at the end is anything written off.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I believe that the PPI reclaim was an asset to which you were entitled at the outset of the IVA - ie if the ability to reclaim existed at that time then this is an asset and not a windfall. You will need to check your IVA proposal to see how this is covered - a leading insolvency barrister has shared this view with me recently, and I believe that this is best advice.
Again it depends upon the terms of the arrangement Andy. This point was raised to me recently by a very respected Counsel - an national expert in IVAs who had been looking into the forum. I am digging further into the legal arguments for and against, and guess this could be good after dinner discussions for us on 5 October when I hope to understand more. Have to confess - just like most other IPs I have always thought they were windfalls, but I am always happy to be stood corrected by wiser beings!
