Whether you have completed your IVA or you are still in your IVA, making a mis-sold PPI claim is still possible.

However, there are differences between the two situations. In one situation, you will be able to keep the compensation you receive from a successful claim. In the other situation, this simply is not possible.

Facts about PPI in IVA

Other concerns also arise when filing a PPI claim. For example, your bank may attempt to use the unrealised asset rule or the offset rule in an effort to keep your compensation once your IVA is finished. Therefore, it is crucial that you understand all of the facts and your chances of success before making a claim.

Currently in Your IVA

It is important to understand that any money you receive as a result of a mis-sold PPI claim can be considered a financial windfall if you are currently in your IVA. Instead of receiving the money directly, the money must be placed in your IVA to pay your creditors. The length or amount of your IVA will not change. Rather, your creditors will simply receive more money back than they originally thought.

Due to the fact that your PPI compensation will be considered a financial windfall under this circumstance, it is highly recommended that you wait until your IVA has ended before making a PPI claim. However, sometimes you may not have the luxury of waiting until your IVA has ended. If an IP requests that you file a mis-sold PPI claim while you are currently in your IVA, the request must be cooperated with.

In certain cases, your IP may arrange for you to keep some of the proceeds if you are in a financial emergency. Additionally, if any banks that you have filed a claim against compensate you directly, you are not allowed to spend any of this money without having a written agreement from your IP.

Completed Your IVA

If you have completed your IVA and your IP did not request that you file a mis-sold PPI claim during the duration of your IVA, then you are more than welcome to make a claim. If your claim is successful, you will be able to keep any compensation that you receive.

However, before beginning the process of making a claim, it is important to know for certain that your IVA is completed. You may be finished making payments to your IVA, but your IVA may not be legally finished and you may still fall under IVA restrictions. Thus, you must have a certificate of completion before filing a mis-sold PPI claim.

Typically, your IVA company issues the certificate of completion two months after making your last IVA payment. If more than two months has passed and you still have not received your certificate, you should contact your IVA company and have them issue you a certificate as soon as possible.

Filing a Claim After Completing Your IVA

The proliferation of media advertisements about mis-sold PPI claims may make the process seem simpler than it actually is. Unfortunately, if you have experienced the IVA process, making a claim is not nearly as simple as it is portrayed.

For instance, banks you file a claim against may try to use the offset rule to withhold your compensation. The offset rule allows banks to use your PPI compensation to pay back debts simply because you were in an IVA. Your mis-sold PPI compensation may also be viewed as an unrealised asset by previous creditors, but this depends upon the specifics of your IVA contract and the manner in which you PPI wrote the contract.

Due to these reasons, you should seek professional counsel when considering making a PPI claim after IVA. Rather than using a PPI claims management company, a specialised solicitor that understands the proper actions to take if banks try using the offset or unrealised argument should be used.

The services of a specialist claims firm can prove invaluable, but you should ensure that the firm you choose truly adheres to a no fee policy for unsuccessful claims. This way you will not have to pay a fee if you do not receive compensation from your mis-sold PPI claim.

The intricacies of IVAs and mis-sold PPI claim filings are often misunderstood by many claimants. By understanding these facts, you will be able to competently navigate the PPI claims process and receive the compensation you deserve.


Maple Leaf Financial PPI in IVA Reclaim Service


Having extensively researched legal arguments on Insolvency claims the company remains one of very few with the knowledge and insight to interpret the needs of Insolvency Practitioners and the ability to deliver financial recoveries on PPI with IVA’s – thus significantly increasing dividends to all participants of the IVA.

Maple leaf financial  maintains a fully regulated account in instances where monies are sent to us, or it is preferred to instruct lenders to make the payments there




The following two tabs change content below.

Tim Capper

Bringing you financial news and information in plain english for Maple Leaf Financial. My aim is to help readers understand these often complex financial instruments.