www.iva.co.uk

Hello.
I have just received a PPI refund of £1080, I am currently in an IVA with Freeman Jones.
Do I need to give all of the Money to them, or am I able to use some of it to buy school uniform.

You need to speak to Freeman Jones but usually the money goes to the IP. They could call a variation to allow you to do this which we have successfully done in the past.

Hi Andrew welcome to the forum.

Hopefully your IP will be able to sort something if you have an urgent need but your expense budget should have allowed for you to make provision for this already. If your budget is too tight then have a chat with your IP as it may need amending.

Do you not have a clothing allowance in your IVA? usually you are expected to use this to fund school uniforms

Talk to your IP in the first instance and take case specific advice about the ppi and the use of some for uniform.
I think you're fairly new to the IVA so may not have been able to build up any amount for a uniform as yet.

Seems a reasonable request to me, but as others have pointed out you need to establish firstly who is entitled to receive the money. Your IP ought to be able to assist you with this. Did you make the claim directly to the creditor concerned?

I am waiting for a payout for a PPI claim. I appreciate that we need to repay as much debt as we can but have been told that the 8% compensation that is paid with the PPI is classed as taxable income. I assume that this means we have to declare it and pay tax on it. So basically, we were mis-sold PPI, we are then putting the PPI back into our IVA which means the creditors are getting at least some if it back and we're supposed to pay tax on the compensation ... Not really a win win situation is it?

Hi Andrew,

The PPI refund that you have received would need to be paid into the IVA in full I’m afraid.

We can however discuss any additional expenses that you need to pay out for and see what we can do to help.

As the forum members have already advised it’s best that you speak to your Relationship Manager to discuss this further.

Thank you

I think that the IP has ultimate discretion on this, assuming that the PPI claim is indeed a proper asset to which the IVA creditors are entitled to, so I do hope that Sarah's collegues are able to look at this for you sensibly, and rightly this discussion should now be taken off-line.