www.iva.co.uk

I'm in an IVA with McCambridgeduffy llp and part of the iva agreement was that I had to reclaim ppi using one of their menagement company (EIF). I've reclaimed over £3000 but McCambridgeduffy are telling me that this doesn't count towards my IVA repayments as it's classed as a 'windfall' and will be given to the creditors on top of my total IVA repayments - is this true?

Hi Timothy,
Welcome to the forum, your IVA company is correct, all it will do is increase the amount to the creditors and will not shorten the length of you IVA. You still owe the full amount of your debt until the end of your IVA anything paid to creditors is deducted (including PPI payments, overtime % etc) and anything left at the end is written off. Some don't even class it as a windfall, it is classed as an asset of the IVA and as such if payable across.

Hi Timothy. PJ is correct in that PPI refunds are generally regarded as an asset, and as such, are payable into the IVA. Some do look on them as windfalls but, unless they are under £500, they are still payable into the IVA.

Hi

Just to agree with all the above points. Some IPs allow you to retain a proportion and some allow interest added to any claim to be paid to the debtor

Regards

If there is interest paid as part of the settlement and it is not deducted at source by the bank we will reimburse the tax liability to you. However unfortunately the rest is an asset of the IVA and will be paid to the IVA 'pot'.

Thanks. It would have been nice to know that before I took time off work to fill out the paperwork for eif.

It may seem annoying Timothy.w but if you hadn't completed the paperwork it could have been seen as a breach and your IVA may have failed.