Can you readjust your iva once it has been agreed?

[michael.mc]

Hello. My friend has a current iva agreement and is paying £400pcm. He is one year into the deal. When the iva is complete he will have paid
his owed amount in its entirety. Has he been hoodwinked into paying the full amount? He is borrowing money to meet the repayments!
This seems crazy. I thought the purpose was to cut the amount owed? He has recently been contacted by another so called 'iva specialist' .
They say he's paying far too much and for a fee of £900 they will clear his debt. Is this legal? Can you readjust your iva once
it has been agreed? Your help in this matter would be greatly appreciated.

[Adam Davies]

Hi
Firstly there is no "magic" way of clearing someones debt.I can only guess that it is "help" in proposing bankruptcy,but anyone can do this without paying for assistance,so steer clear.
Even if your friend pays the full 100p dividend then he has saved on many thousands of pounds of interest and has had no "hassle" for the IVA period.He has not been hoodwinked because in an IVA you must pay back as much as you can afford to.
Payments can be reduced down but this needs a variation meeting and agreement of 75% of his creditors,by money owed, that vote. He will need to speak to his IP asap.
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

[MelanieGiles]

This sort of marketing is absolute rubbish - and I am fed up of hearing stories of so called IVA experts purporting to be able to get better deals than the IP who is currently acting. Your friend should be proud that he is going to be paying all of his debts off in full, whilst benefitting from an interest free period. Concerned that you say he is borrowing money to make the payments, though - were the wrong figures used in his IVA proposal?

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Sadsack]

I wish that I was in a position to pay all that I owe, but this is not a possiblity. A company offering a service at a cost of £900 to clear my debts is the biggest load of B******s I have ever heard. If that were possible, none of us would be in this position. As for borrowing money to meet his repayments, he needs to contact his IP urgently and to discuss this with them. I too have been borrowing money to keep myself going, paying the money back and then borrowing again. It's a never ending viscious circle. I am a home owner and the maintenance/contingency fund available within the IVA simply does not cover the expenses running the home. What with ever increasing interest rates, breakdowns in the home etc etc, it is a struggle.

Sue

Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/