IVA definition and what it means for you
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If you've been mis-sold PPI, any refund you're entitled to will have to go towards your debts if you're on a Trust Deed.
If you're on a Trust Deed, it's your trustee's job to find out about your assets to see whether there's any money that can go into your Trust Deed. Being on a Trust Deed should make your debts much easier to deal with - but your lenders will expect you to pay in as much as you can.
'Assets' can mean a lot, including your home (or the equity you have in it), your savings, your investments - and any debts that someone else owes you.
So the money that you're owed by a company that mis-sold you PPI (Payment Protection Insurance) counts as an asset. That means your trustee has to find out if you're owed anything by a PPI company - and if you are, they'll have to make sure it goes into your Trust Deed.
If you're not sure about any part of your Trust Deed, just give your trustee a call and they'll be able to explain it.
Wouldn't cancelling a PPI policy leave me unprotected?
If your policy was mis-sold, your trustee may tell you it'll have to be cancelled.
• If it's PPI on an unsecured debt (one of the ones included in your Trust Deed), it's irrelevant anyway, as you're dealing with those lenders through your Trust Deed (and the remaining debt will be written off once you successfully finish your Trust Deed).
• If it's PPI on a secured debt (like your mortgage), you might want to keep the policy if it's still protecting you. If so, your trustee will do what they can to help you. For example:
• They might let you keep that policy - say your refund would be worth £1,000, you might be able to keep the cover and pay an extra £1,000 into your Trust Deed when it comes to an end.
• Or they might be able to lower your Trust Deed payments to make sure you can afford a new PPI policy to replace the one that's been cancelled.
If you have any questions, remember your trustee is there to help, so give them a call and find out where you stand.
by Christine WalshBack to blog home