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Completed IVA now what about PPI

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I have read all other threads and none really answer my question so here goes!
We have just completed an IVA (YAY go us lol) :j
We had a number of loans with PPI and believe this was missold. Now we could reclaim but what happens as we have completed an IVA. Does the money still go back to the IVA company and they distribute between old creditors? If so as IVA finished and would be of no benefit to us dont see the point really. If we are likely to get some of it back then maybe worth the effort. We struggled like mad to pay the IVA and I know we were responsible for all our debts but we entered into the IVA in good faith and to pay fairly what we owed as best we could and by reclaiming and it going back into IVA seems like the creditors were unfair in mis-selling in first place - now they give it back with one hand and take back with the other??? The added cost of the PPI onto our loans due to mis-selling helped us get into the problems in the first place :mad:
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Comments

  • debtinfo
    debtinfo Posts: 7,012 Forumite
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    The first thing to do is ask your IP. also what percentage of the debts did the creditors get back in your case
    Hi, im Debtinfo, i am an ex insolvency examiner and over the years have personally dealt with thousands of bankruptcy cases.
    Please note that any views i put forth are not those of my former employer The Insolvency Service and do not constitute professional advice, you should always seek professional advice before entering insolvency proceedings.
  • Gimpsdad
    Gimpsdad Posts: 315 Forumite
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    Depends who your IP is. Most IP's view mis-sold PPI as being an asset of the estate, and therefore any realisation from that asset is for the estate and not the debtor. Some allow an amount to be kept as a goodwill gesture, but not many.

    On the other hand, there are IP's out there that either disagree with that and are not pursuing these assets, or who are turning a blind eye once the VA is closed.

    What you do is up to you, but if you are worried you should contact your supervisor and ask the question. If they are not interested then you have nothing to lose by attempting to reclaim it. Whether creditors pay out is another matter, but I have seen it happen. Mind you, on the other side, I have also seen IP's threatening to bankrupt people even after completion if they refuse to co-operate with an investigation into possible realisations. Might be a tad harsh for some tastes that, but probably best on balance to ask the question so that you hear it from the horses mouth.
  • sarah222
    sarah222 Posts: 126 Forumite
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    It was the IP that sent the stuff to us to reclaim saying they are obligated to try and recope as much as possible for our creditors - which I understand. I think they got 45p in the £ off top of my head. We got the letter about PPI last week and our last payment went out yesterday so seems strange to have left it so late to start knowing we so close to end. Once we receive the completion cert would this change anything??? The IP said we would receive cert in around 2 weeks as they only waiting on a signed form from us they have everything else. I sent that to them recorded delivery monday but reading other threads it appears it takes months for cert to come? Our IP were McCambridge Duffy.
  • sarah222
    sarah222 Posts: 126 Forumite
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    The letter they sent us stated we may be entitled to upto 43k we were amazed at that seemed totally unrealistic as our total debt was I admit 75K but PPI for over 50% of it????
  • Aidanb_2
    Aidanb_2 Posts: 66 Forumite
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    Hi, we'll done on completing your Iva I finished mine this year got my cert through then started the ball rolling on my ppi I only put one claim in and was held up and cheque been paid and fully cashed. Be careful when you go once you have your cert then you are ok to do it from what I was told. You do run the risk of the money you get back being offset against any debt written off as part of the iva so don't be counting on the money.

    I did mine as a chance and paid off but could have gone the other way if your iva co like mine then you will keep the 8% interest on it and rest go back to who ever but this would reduce the time it takes to get your cert through as it will have a break down of all fees paid back to each creditor.

    Good luck on what you choose.
  • sarah222
    sarah222 Posts: 126 Forumite
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    Thanks I think I will wait for Cert then maybe try and claim 1 and see what happens
  • debtinfo
    debtinfo Posts: 7,012 Forumite
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    Well you do need to reply to your IP or they probably won't send your completion certificate
    Hi, im Debtinfo, i am an ex insolvency examiner and over the years have personally dealt with thousands of bankruptcy cases.
    Please note that any views i put forth are not those of my former employer The Insolvency Service and do not constitute professional advice, you should always seek professional advice before entering insolvency proceedings.
  • sarah222
    sarah222 Posts: 126 Forumite
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    Ive asked my IP if anything was outstanding to prevent issue of cert and they told me no they have everything in place. The documents for the PPI have come from someone instructed via the IP and they never mentioned it I will give it a few weeks and see if cert turns up then chase it to see what hold up is.
  • dunstonh
    dunstonh Posts: 116,707 Forumite
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    Does the money still go back to the IVA company and they distribute between old creditors?

    It is a grey area as there are no hard and fast rules (unlike bankruptcy). Some lenders will return the redress to you. Others will use the redress against any debt that was written off with them. Some people have persuaded the lender to pay them whilst others dig their heels in. As there are no rules saying what has to be done, you are partly relying on luck. Some IPs will try and get the money for the estate.

    Whatever you do, do not use a claims company. If redress is paid but doesnt come to you personally, you still have to pay the percentage cut to the claims company.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • sheerah
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    Finished my IVA 12 months ago, not had completion certificate but had instruction to claim back any outstanding ppi which will go to creditors. Rang to enquire where certificate was as IVA completed last october on to be told file only went to closure dept in may this year and should get certificate in next few weeks, but no money from ppi
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