You can claim for PPI after an IVA. Any claims you make could be worth £1000s to you. However the Arrangement must be legally completed.
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- Can you claim for PPI after an IVA?
- Will the banks refuse to pay your compensation?
- Should you use a Claims Management Company?
The deadline for claiming for PPI was 29th August 2019. If you did not make your claims before that date you are no longer eligible. No new PPI claims can now be submitted.
Can you claim PPI after an IVA?
There is nothing to stop you making claims for PPI after an IVA. However you must wait until the Arrangement is legally finished. This happens only after you have received a Completion Certificate signed by your Insolvency Practitioner.
If you make PPI claims before you have your Completion Certificate any compensation paid is still a windfall. In these circumstances it will have to be paid into your Arrangement even if you have finished making your payments.
Any claims you make do not have to be limited to debts which were included in your Arrangement. You can claim against debts that were paid in full before it started and secured debts such as a mortgage or secured loan.
It is still worth making claims even if you think your IVA Company has already done so. It is possible that this process was not completed thoroughly and potential compensation was missed.
Will the Banks refuse to pay your Compensation?
Once your IVA is completed and you have been issued with your completion certificate you may think that claiming for mis sold PPI will be easy. Unfortunately this is not the case.
There is still a strong chance that the banks will refuse to pay you the compensation you are due. The reason for this is that they are likely to argue the set off rule and the rule of unrealised assets.
The Set Off rule – This states that the bank can hold back any money that it owes you and use this to pay off any debt that you owe them. Banks often claim they can use your PPI compensation to pay off the debt you did not pay them as a result of your IVA.
The Unrealised Asset rule – This rule is used to determine how assets should be treated which come to light after you are discharged from bankruptcy. Banks often say the same rule should be applied to an IVA. As such they argue compensation should still be paid to your old IVA company rather than you.
Should you use a Claims Management Company to claim PPI after an IVA?
Given the likely reaction of the banks you might think there is little point in trying to make PPI claims at all. If you try and claim there is a good chance you will not get the compensation you are owed.
For this reason you should consider using a Claims Management Company to help you. You cannot use a standard Claims Management Company. You will need to use a specialist who understands your circumstances and how to deal with the Banks and your IVA Company if required.
Of course you must expect to pay a fee. This is normally around 30% of any compensation you are paid. This may seem high. However you are getting a specialist service. You should pay nothing unless you actually receive your compensation.
Beat My Debt is not a Claims Management Company. We are unable to help you with your PPI claims. If you want help you need to use a claims company regulated by the Ministry of Justice.