www.iva.co.uk

I have just found out a friend has recieved a cheque for a PPI rebate and has no intention of paying it into her IVA!!! Her PPI was fron a secured loan which she settled long before the IVA began. She plans to cash the cheque and spend the money on work she needs done to her house.
I am very worried she be be found out and get into big trouble.
She is a single mother and works hard and has nothing to show for it so I do not begrudge her this money but worried about the trouble she could find herself in!

Hi,

She may well find herself in trouble and should declare this to her IVA. She might be able to keep some back for necessary repairs but should never try and hide this from her IP.

If this cheque goes through her bank account it will be seen by her IP at review time ( assuming he / she is doing their job correctly). At that point the IVA could well be declared in breach.

It does depend upon whether or not the IP requires bank statements.

This is true, Jan. Mine does.

Perhaps we should not assume the worst about this person - the PPI reclaim is treated as an asset in the IVA, but if her proposal was not clear as to what assets are actually included then she may have grounds to claim that it is not an asset of the IVA. These claims are not windfalls, so you could suggest to her that she has a read of the proposal to be sure.

Sorry folks but this post has been edited just so there is no misunderstanding about our advice to be be totally upfront and honest about IVA finance at all times. We appreciate that you were not condoning anything underhand animaleyes [:)]
Admin

I imagine that it isn't difficult to hide any windfall, but who wants to have that hanging over them during the IVA with the realisation that if found out the IVA could fail and you'd be back to square one? However tempting it may be, it’s best to be upfront about everything. A clear conscience is invigorating!

Sensible77 wrote:

I imagine that it isn't difficult to hide any windfall, but who wants to have that hanging over them during the IVA with the realisation that if found out the IVA could fail and you'd be back to square one? However tempting it may be, it’s best to be upfront about everything. A clear conscience is invigorating!

i agree, however some people don't have consciences , and a lot of them wouldnt even spend a second worrying about the possible consequences.. Luckily most people are quite decent, especially the bunch on here

You are both right, sensible and animaleyes. Personally I have had enough "ducking and diving" with creditors, without having to put up with that during an IVA ! And, then, to risk it all going pear shaped, when what is being worked towards is, effectively, a fresh start is unimaginable.

The best thing Casseyandclay can do is to make her friend aware of the enormity of the potential pitfalls. I imagine the amount likely to be written off debts at the end of a successful IVA will more than cover what is to be gained, in the short term, from pocketing the PPI repayment.

However, as Mel says, it might be OK for her to keep it legitimately. The best advice would be to run it by the IP. If it has to be paid in, so be it, if not then it can be enjoyed with impunity.