I am sorry for your loss.I understand that you have now had a further conversation with your RM and we’ve been able to give you a little more information.
As other posters have touched on, older IVA proposals often included a standard condition that stated, in the event you are able to settle your debts in full, creditors would be entitled to statutory interest at 8%. Newer IVA proposals don’t usually have this condition as standard, but creditors often ask for it to be added before they’ll accept your repayment terms (this is called a modification).
Even if the condition is included in your IVA it is possible to ask creditors to vary the agreement (although it isn’t a foregone conclusion that they will accept). I understand the team have discussed these options with you.
I hope this helps.
Sarah Jolly IMA CMAP - A member of the IVA team at Freeman Jones
Hi Sarah, many thanks for your response. It does seem somewhat perverse that creditors add on interest in the event of them getting back far more than they agreed to accept in the first place !
Grabbing some extra out of a lottery win I can understand -- but from an inheritance is not so acceptable.
I appreciate that we are in the hands of the creditors, but, surely it is worth a try.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Hi yes spoken to my rm and apparently only one creditor has asked for this modification and theydont hold75 per cent of the debt so fingers crossed they will agree to stat tax being removed
