is this correct?

[a.s]

We are currently nin an IVA which has been extended to 6 years now we are being told this could be increased longer is this allowed. Also after 4 years interest has been added on to the debt we were told that this would not happen is this correct. We have also been told that we should have not been offered an IVA but to have been bankrupted as we do hot have any assets is this correct.

[johnt]

Your IVA could be extended past five years if your circumstances have changed. I've been told that an extension of sixteen months could be given, but this will vary from one company to the next.

Not sure about the interest. This sounds a bit dodgy. Interest is usually not added, although I'm sure someone could correct me on this.

Having an IVA or being made bankrupt depends on you circumstances, which I'm not aware of.

Generally if you owe a lot of money, have little or no income or assets, then bankruptcy would be a favoured route.

[MelanieGiles]

Hi a-s - your post is incredible, and I can hardly believe the facts you are quoting. Who is telling you that you should not have proposed an IVA?

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

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

[jpj]

How long have you had your IVA ??

Whenever you see promotions for IVAs, it always says "be debt free in 5 years" there is never an asterisk by the side saying "it could be up to 16 months longer"
I never knew it could be extended until I joined this site! (im sure it says in the small print of the IVA, but by the time it is in front of you to sign, it is a bit late to argue!)

[MelanieGiles]

Hmm - I quite like that paragraph and may well pinch it for my own proposals!!!

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

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

[pixie]

I have a minimum dividend mod which means that if this isn't met I would have to pay for up to 72 months. 72 months would be the maximum though.
Interest should be frozen as soon as the iva is approved, I thought this was the law?
Within your proposal there should be something that governs extending the payment time.

Pixie

[OPTIMIST12]

I have always understood interest and charges are frozen from the date of a successful Creditors meeting. However, claims will come in higher than the original proposal figures as interest and charges DO continue from the initial preparation of the proposal until the Creditors meeting. So if the proposal takes a long while to prepare there could be quite an increase.

It is important for people to understand the implication of the Minimum Dividend condition. Like Pixie - I have this one.

[aguise]

Mine also states no longer than 72 months.

Ang

Please visit my blog at http://aguise.blogs.iva.co.uk/

[Adam Davies]

Hi
The extension to your IVA can happen and is normally because of one or more of the following, arrears,extra claims or increased IP costs.
What you need to challenge is the interest added as this can,t happen in an IVA.
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