Legal question re: IVA & PPI

blazey

I have a simple question I wondered if anyone could help me with.

I am in the process of claiming back PPI with many of my lenders. At least one lender has agreed to pay back the full PPI I was charged plus interest.
I just have one problem, I am in an IVA, currently taking a years payment break because of maternity leave. Due to start paying again in June and will be finished in February.

Am I breaking the law if I keep the money I am offered by the lenders I am claiming from?
I want to place the money into an account for my baby, for when she's 18 years old.

FoggyBrain_2

Hi Blazey .. no you are no breaking the law, as such. However, your IVA will be failed and you will be back to square one with your creditors. This means they will start chasing you again, adding interest from the start of the IVA as well as charges..... it could get messy.

There is also the chance that the lender will not pay you back the money directly, but offset it against the loan.