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Aston Lawyer
Aston Lawyer, Solicitor
Category: Law
Satisfied Customers: 10458
Experience:  Solicitor LLB (Hons) 23 years of experience in Conveyancing and Property Law
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I have received a cheque for a successful PPI claim. The cheque

I have received a cheque... Show More
I have received a cheque for a successful PPI claim. The cheque was made out to me and I deposited it in my bank. I have an IVA and the agents who set it up want me to send the money to them to be paid off my debt. I would like to know if I am legally bound to pay the money to them.
Submitted: 3 years ago.
Category: Law
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replied 3 years ago.
Hello and thanks for using Just Answer.
My name is ***** ***** am happy to assist you with your enquiry.
There has been some inconsistency surrounding the treatment of PPI compensation in IVAs. Much of the confusion relates to whether the compensation is classed as an “asset” or a “windfall”.
An asset is something of value which can be used to help pay off your debts, such as a car that you own or equity in your home.
A windfall is something of value that you were not entitled to at the commencement of the IVA, such as a lottery win.
As regards ***** ***** awards in IVAs;-
PPI compensation is not a windfall. It is an asset, all of which must be included in the IVA.
Your Insolvency Practitioner has an obligation to maximise returns to creditors, which includes investigating any and all assets.
This means that you should tell your Insolvency Practitioner if your PPI claim and he is entitled to receive the full amount received by you.
I am sorry this is not the answer you were looking for, but sets out the legal position.
Kind Regards
AL