ANNUAL REVIEW QUESTION...

[RICKI]

I'VE POSTED THIS ELSEWHERE AND JUST REALISED IT'S PROBABLY IN THE WRONG PLACE SO PLEASE EXCUSE ME REPEATING MYSELF....!

Hi all,
I've recently had my first annual IVA review (WOOHOO!!) and I've just received my creditors statement but I have a question that I was wondering if anyone could help me with...?
* The letter states that, due to increased creditor claims (one was £3K difference), we will have a shortfall of over £3K although a few creditors have yet to stake their claims. We're paying 100p/£. As per our IVA T&C, we've just paid almost £2K as 50% of our overtime so will such payments in the future be taken off the £3K shortfall? I'm assuming it will as we're paying back 100% so surely there's a 'ceiling' as to what we pay during the IVA term?

I hope that all makes sense - I read the letter and panicked but I'm hoping it's nothing too much to worry about.
Thanks in advance,
Ricki x

[ray_a]

Hi Ricky

I don't think you should worry as an IVA is about paying as much as you can to your creditors and if the recovery is 97% then that is a very good recovery.

Might be worth reading your proposal and any modifications arising just to see what your position is.

[RICKI]

Thanks for that, Ray.
My proposal says that failure to pay a minimum dividend of 100p/£ shall be deemed as a DEFAULT OF THE ARRANGEMENT. That's what's making me panic, although obviously we'll be paying in more money from overtime etc.

[MelanieGiles]

Your overtime monies will be taken into account if there is a shortfall, and the IP will merely extend the term if necessary to hit that all important 100p in the £. I suspect that this will be unecessary if you are paying over overtime monies as well.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To appoint me as your IP visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[lily]

Hi Ricki

Nice to hear from you, I hope its all going well.

Didnt that first year fly by for you???



lily

[james.c]

I am interested

Is it possibel to end up paying more than 100p to the £.

I believe it is possible because it you have enough surplus income over the IVA then you have to pay it in to the IVA and if this means that the creditor more money back, then this makes up for the interest they have lost after all lenders dont lend money for nothing they are bussiness that needs to make a profit.

Only reason I ask is because I am Curious, I hope melanine or andy can answer this one

no matter how bad money gets, theirs stll alot more important things in life

[Adam Davies]

Hi
No,you can,t pay more than 100p.The IVA will finish once you have paid 100p and the IP fees.The only issue could be statutory interest but this is usually only used for lump sum IVAs but is a little bit of a grey area.
I,m sure Ray will have something to say about this.
regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[RICKI]

Thanks for all your really useful replies as always - I really do appreciate all your help! I promise I won't panic too much about it all (for a while!).

Lily... I'm great, thanks very much! Just made our 13th IVA payment and I can honestly say its the best thing we've ever done. Its such a shame when people post to say they're having probs with their IVAs because I now feel more financially secure than I ever have done. The last year really has flown by and so much has changed - For one thing, our new baby is now 4months old and it's great to know that everything we buy for the kids is with OUR money that WE'VE worked hard to earn. [:D] It's a beautiful sunny day here today so I think it's rubbing off on me!!Great to hear from you Lily! I read the boards regularly so I'm always around! Hope you're well!

Well thanks again everyone!
love xx

[lily]

I am seeing things with new and more positive eyes at the moment thanks.

So glad that your IVA is going so well, it really has flown by, 4 months old already!!!! You sound so positive and I am really pleased for all of you.

lily

[RICKI]

That's really good Lily! It's true that time flies by but its so good to know that we're on similar journeys together and its good to hear how everyone's getting on these days. Everyone was so helpful through the dark days last year that I feel indebted (no pun intended I promise!) to every one of you. And when the next 4yrs are over, we'll have an (online!) party! I'll bring the wine!
Take care and please keep in touch - It's good to know you're well x

[sonyse2t5]

The first 100p to the £ IVA I have heard of on this forum...I bet NR would accept that and vote YES

[RICKI]

Unfortunately NR wasn't one of our creditors but I too think that they'd probably have agreed!!They'd prob have moaned a bit still though!!
I too haven't heard of another 100p/£ IVAs - Does anyone have any idea how many there are where creditors have to pay back 100%? Or is it just me??!![;)]. I'm actually quite happy that i'm paying 100p to them. No, I think the sun's really just gone to my head!!
x

[mikebdomain]

You are not alone paying 100p in the £. at least 25% of people applying for remortgages for F&F with us are.

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[RICKI]

That's really interesting to hear, thanks for that. When it comes to us remortgaging I hope you're still on these boards cos you can be sure I'll be asking lots of questions!!
Thanks everyone.