IVA Advice

mrmitchell

I am 12 months into a 5 year IVA, at the initial creditors meeting my IP agreed that I would pay back £21k of my £32k debt.

About 6 months ago I rec'd a cheque for just under £15k for being mis-sold PPI, this cheque was sent to my IP.

To date, I have paid if you include the cheque, just under £19k. In addition I spent 12 months on a DMP.

Can anyone tell me if I have to continue with full 5 year term?

By my calculations I should only have another 6 monthly payments to make. If I continue for the full term I end up paying more than the total original debt.

I have posed the same question to my IP but to date they have not answered. :mad:

FoggyBrain_2

Hi you will continue paying as agreed until the end of the term, or until the full original debt plus fees have been met. Remember, though, in the meantime you are not getting stung for an unearthly amount of interest.

Max_Maxwell

Sadly it doesn't work that way, mrmitchell. It's the IP's job to recover as much of the original debt as possible even if it's 100% within the 5 year term.

Ed_Gilmore

Before you paid the PPI refund into the IVA, did you discuss with your IP and how it would affect the terms of the IVA itself?

Most if not all IVA's will see PPI claims as a windfall and expect this to be paid or part of it into the IVA depending on the terms.

Have you checked what your terms of the IVA say in relation to extra contributions?