Iva has taken my ppi refund

[Bscdjc]

Hello,

I have had a refund of PPI from First Plus (Barclays) but rather then sending me the cheque they have sent it to Payplan direct. Even though our loan is joint and the cheque is payable to my wife only. Who does not have an IVA or any arrears on anything.

Payplan today told me that 50% will be returned to my wife at some point. (Can my wife charge a daily interest until they return her money)

I am at a loss for words, First Plus did not tell us what they had to do. Payplan have said that the even though they are gonna keep half the money it still wont settle my IVA with 4 years remaining. Is there any way I can force payplan to accept this payment they will keep as a full and final.

Should I now let my IVA fail and go bankrupt. ?

[FoggyBrain]

Hi. I am afraid they are entitled to retain the 50% share as the claim payment is an after acquired asset. The creditors will not accept an offer of something they are going to get anyway.

How far into your IVA are you? Do you have assets to protect, like your home, car etc? You will get a payments order in BR, much the same as your IVA payment, for three years (so could end up paying more). Could lose assets and be no better off.

[Bscdjc]

I have 4 years left I am hoping they will accept the full and final. I just wish I had went backrupt. I do have a house but in massive negitive equity and will be for some time. Took out a massive secured loan a 5 years ago before the house price drop

[FoggyBrain]

They won't value the house for 2 years and 3 months ( but doubt it will increase much in that time ), so that shouldn't be an issue. A three year PO still shorter than the 4 years left on your IVA. Please take further advice, but it does look like an option.

[Bscdjc]

How do I go about getting a payment order ? there is nothing on line from what I can see. Is it something Payplan can do.

[FoggyBrain]

A payment order would be issued when (and if) you went bankrupt. But to do that you will have to allow the IVA to fail and be issued a notice to that effect. If you deal with your own bankruptcy it will cost in the order of £700 in court and application fees. Pop over to the bankruptcy board on this forum and gen up on it. I am sure the posters on there will be able to give you more informed advice.