Hi, I have an I v a , and I am in the process of selling my property .I was on debt management first . Now the I va company have said that I have got to pay back 8, 000 extra because of interest is that right.
Hi. Older proposals had a clause stating that, in the event that 100% of the debt was paid then the liability for interest arose ( generally at 8%). Of late, it seems, IP's have realised that this is wholly unfair to penalize a debtor for hitting 100% repayment and no longer include this onerous clause.
Many IP's, these days will, if the clause looks likely to be triggered, seek a variation with creditors to have this removed. My impression is that creditors are, on the whole, content to agree.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thank you for taking the time to reply. I'm going to offer to full amount again, if they say o have to pay the interest I am going to cancel I v a. They have not put a note to creditors.
Had no sleep again last night this is making me so ill , I thought putting my house up for sale would get me a bed to help me get up in the morning, thats what my d l a is for , they want so much interest because they know I have equity. I thought the creditors would want a end to this not make me stay somewhere where I can't go out because I haven't got a stair lift, the lady on the phone friday from freeman Jones sounded happy that I agreed to carry on with the iva and take my house of the market , my son overheard this and started crying , he has had a lot happem to him this year and needs to leave this area .I am so annoyed woth freeman Jones .
sold my house this year, due to losing my job and made a f&f offer of
monthly payments X months left. Which let enough over for set up costs.
But this did not cover 100% of IVA. don't see why you should be penalised for paying back the full amount of you IVA.
IVA now over with and it was worth it.
now starting my life again,
Thank you for that info kev 59, my debt was 19, 000 but they said at the meeting that it was nearer the 23, 000 mark, now they said because I have sold my house they want 27, 200, my lawyer is waiting for them to lift restrictions from my title deeds, I only thing I can do is fail the I v a .
I will ring them again tomorrow, but they insist that they want the interest , if I don't sell my house I have to pay 10, 400 , but I want rid of my debt amd a better life for my son , thank you for your reply .
I am sorry to read that you are unhappy with the figures quoted to settle your IVA.
I believe you have spoken to the team this morning and we’ve been able confirm how we arrived at the final figure to pay 100p£.
There is no charge for statutory interest and our fees have been calculated in line with your creditors modifications upon acceptance of your IVA. We have also offered to reduce our fees significantly further.
If we can help any further please don’t hesitate to get in touch and I believe that we are waiting for you to confirm how you’d like us to proceed.
Thank you
Sarah
Sarah Jolly IMA CMAP - A member of the IVA team at Freeman Jones
I generally find that issues like this are better explained and understood before assets are sold, to avoid confusion at the end stages. Selling a property is stressful in its own right, but to not be left with the sort of money you are expecting, when you may be committed to rental deposits etc, can be devastating.
Let's hope that Sarah can work her magic for you - it is good to see an IP firm prepared to compromise on their own fee income if things have gone wrong or been misunderstood.
Thank you for your replys, after the telephone conversation yesterday they did confirmed that it was not interest( as told last week)it was fees. I have the amount that came from the debt management and I never missed a payment my dla paid for it I have said I will clear I v a and 1, 700 in fees but I got to wait thirty days to see if creditors will accept. I wish I never had I v a . I was on anti depression tablets when I took this out . I'm going to do what the . I'm going to do what the the c a b told me to do now.
I am sorry that your confidence in the IVA process has been affected by recent events Janet. IVAs are a very good solution for people to clear their debts with, but when it comes to paying 100p in the £ plus costs, there can often be a sense that fair play has bot prevailed.
Do remember that whilst you are paying the costs of the IVA on top of creditor claims in full, that you have benefitted from no ongoing interest being charged throughout the IVA.
