Hi I recently cancelled my IVA

[Mr BP]

Hi

I recently cancelled my IVA and went back to my creditors. I am now in a better paying job than I was when I first got into an IVA and feel I can pay my creditors back quicker directly as the amount I owe isn't huge.

I was in the IVA for nearly 4 years, in this time I have paid between 5 to 6 thousand pounds into the IVA fund. As my creditors are now coming back to me asking for the full amount I owe them to be paid to them I would like to know what would have happened to this money I paid into the IVA. Am I entitled to request a detailed break down of how much actually went to the creditors, if any!? and how much was taken by the IVA Company in fees?

Kind Regards

Mr BP

[kallis3]

If you have failed your IVA, then you should have had a certificate of non compliance from your IP and you should have had a breakdown of payments.

You will find that your creditors will want more as I imagine they will have put interest back on there, which they are entitled to do.

Personally I think you should have let the IVA run its course and just upped the payments that you were making. You could have been debt free in next to no time.

You are now back to square one I'm afraid.

[Michael Peoples]

Hi Mr BP. Seems strange to have failed the IVA when you could not only maintain the payments but increase them. You would have been debt free in about a year and creditors would have received a higher dividend that originally proposed.

You are entitled to ask your IP for a receipts and payments account to see what if anything was paid to creditors. However, given the relatively low contributions to the IVA do not be surprised to find that most if not all went on fees and costs.

[fredjones]

Hi

I wish it had been that simple as to up the payments slightly and finish my IVA in a year. I had an IVA with the company Blair Endersby, who never replied to any of my calls. Didn't keep me informed of where I was with the IVA and just seemed interested in upping the monthly payments constantly and adding extra time to the IVA.

I don't understand how a company can get away with taking thousands of pounds from an individual who is already in debt and calling it payment for fees. Time for a change of system and government if companies like this can pray on people who are already financially vulnerable with no support or regulation from the government atall.

If i had just paid the 6 thousand directly to the creditors rather than into an IVA I would have paid off 3 quarters of my total debt by now.

Regards

MR BP

[kallis3]

All IVA companies charge fees, these are capped by the creditors.

The companies put a lot of work in to set up the IVA, and then need to administer it for the five years. A reputable company does not pray on the vulnerable - they are there to help you sort your finances out so that you can be debt free in a relatively short time.

If you are not happy with the service you have had from them, you can always make a complaint.

I am surprised though that with such a low level of debt, an IVA was proposed in the first place. You could have done a debt management plan and probably have been debt free in about 6 or 7 years.

[MelanieGiles]

It is a shame when one bad experience is publicised in this manner - as it gives new posters and observers the wrong impression of a very reputable profession I am proud to be part of.

I have to say that the way both you and your IP handled the IVA seems very odd - but of course we do not know the full facts of why the IVA failed.

[kallis3]

It is fortunate that the majority of posters on here are more than happy with the service they receive from their IP's.

Hopefully any new posters or people hovering in the background will see the positive posts and realise that an IVA can be an excellent tool for sorting your debts out.