Hi I've just been going through all my paperwork and have just relised that on my secured load I have payment protection, and if I dont make a claim on it within the first 60 months I will receive a payment of £9750!! If I did get this money how much would I have to pay into my IVA I would be just over 3 years into it when my 60 months would be up.
I would imagine all of it - after all, if you did not have the payment protection on your secured loan then your disposable income would increase meaning a much higher return to your creditors in any case.
I would have thought that your IP might have picked up on this prior to your IVA starting.
I wonder what the experts thoughts are? A windfall, by definition, is an unexpected win or gain whereas this payment was (or is now) expected. Would the "first £500" rule apply?
I would treat it completely as a windfall and all the money would have to be paid to the IVA. However, if the property is in negative equity the secured loan company may agree to reduce the balance by the equivalent amount but Kaza would need to speak to their own IP.
This ought to have been highlighted to you by your IP prior to you entering into the agreement. I assume the loan is from First Plus? I do not agree that the money should be used to reduce the balance of the secured loan - it is a windfall in my opinion, and one which creditors should benefit from.
