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Answers to all your PPI claims questions if you are in or have been in a DMP or IVA or Bankrupty
Please can anyone help. We finished our IVA with a full and final offer a year ago and have a completion certificate. We have put in a PPI claim which has been successful. The bank has said they will contact our IP to ask them how this will be dealt with. I have posted this on my usual IVA website to be told that is correct and the money gets distributed to all the creditors by our IP and it doesn't matter that it is finished. We also read that if an IP finds out you are keeping PPI money which is classed as an asset then they can re-open your IVA and even bankrupt you. Is this true. It all seems very odd as two months ago the same people were saying the opposite and now saying a new law has come in that means it has to go to the IP. Can anyone help?
Hi getoutofdebt and welcome to the forum.

The advise that you have received from your usual IVA website is incorrect. If your IVA is completed and you have the certificate of completion then any successful PPI claims that you make from now on should be paid directly to you. They should not go to your IP or be used to repay your creditors. As you have completed your IVA any outstanding debts were written off. As such they no longer exist and the funds therefore cannot be used by your old IP to pay them.

The best thing to do would be to contact your old IP directly and make sure that if they are contacted by the bank they will instruct the bank to issue the funds directly to you. I am surprised that the bank in question believes that you are still in an IVA. Have you checked the insolvency register to ensure that your IVA is no longer listed as live?

Let me also confirm that if your IP finds out about this PPI payment, they will certainly not make you bankrupt. There is certainly no new law that has been introduced which says any different.
Thank you so much for your help and support today. My husband phoned the bank and a very nice lady just said that we needed to fax a copy of our completion certificate and they would send a cheque through to us. We have checked the insolvency register and we are not on it anymore so I don't know why they think we are still in an IVA.

I will ignore what I was told on the other website as they were actually quite rude and made me feel very bad for even trying to put in a claim after having debt written off. I know that is some people's opinion but to tell me that it is correct that the IP takes all the money is obviously wrong.

Thank you
Hi Get out of debt

A PPI compensation payment can only be regarded as a windfall in an IVA if the IVA is not yet completed. Clearly if the agreement is completed as proved by the fact that you have your completion certificate then such a payment is no longer covered by the windfall clause and it is yours to keep.

I believe that there is a certain amount of confusion out there about this because there are many cases where people have finished their contractual IVA payments but their IP is yet to formally complete their IVA and issue the certificate. During this "dead time" the IVA is still formally live and windfalls are still covered by thre windfall clause. This is quite a fine point so I am not surprised that you have been given the wrong information by another debt forum. All the more reason to ask your questions on the BeatMyDebt.com forum :)
Hello Get out of debt. I am very pleased to hear that you have been able to get the right advice here. There is no question that once your IVA is fully completed and you have the completion certificate, then any subsequent windfalls you receive are yours to keep. I hope that you receive your cheque from Halifax shortly.