The clause which Helen has quoted probably came as a result of a creditor's modification which was widely used a few years ago. It was introduced by creditors to discourage firms from taking up front payments from clients and using them to pay their fees, without the creditors's knowledge. It is difficult to see, in light of that provision, how the IVA could terminate at the 60 month point.
Hi all,
I’ve spoken with Derek Oakley, our Director of Debt Solutions and senior IP. He has confirmed to me our clear policy as follows;
• The IVA lasts as long as specified in the agreement. For almost everybody that’s 60 months
• Where a client has paid monies in advance of the IVA being approved they will be treated as on account of the 60 months payments
• For example, if a client agrees to pay £30,000 over 60 months into their IVA and make payments totaling £1000 before the meeting, then the balance to pay is £29,000.
There are circumstances where an IVA may extend beyond the agreed term. The main reasons are
• IVA payments are rescheduled by the client. Usually this is because there has been difficulty maintaining the payments agreed in the proposal. The payments may have been reduced and the term extended. This will always be with the client’s agreement and usually will involve a variation to the original IVA.
• The IVA includes a modification requiring a minimum dividend. For example, a modification might state that the IVA cannot be completed until a 40p/£ return has been made. In such a case it may be necessary to make additional payments to achieve this 40p/£ condition if, for example, creditor claims turn out to be higher than initially thought. Once again, this will have been agreed by the client at the meeting of creditors. When we are performing our annual case review and it appears likely that the minimum dividend modification will have an impact, we will make clients aware that an extension to the term is likely.
Just to update you all - we're done!!!! IVA now completed.. Thanks you so much Declan for sorting this out for me.. We have one very reduced payment to pay and thats it. Have just spoken to a very nice lady with regards to my pre payments etc. Shes spoekn with the accounts team to make double sure of the final payment. Thank you so much again Declan. I want to cry now.!!
Good luck for your debt free future and keep posting so we know how you are getting on.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Thanks every one. I will certainly keep in touch. This forum has been such a great source of info for me - and its important for all who enter into IVA that they are not alone. I'm sure that Declan will soon have some good news for you Helen too. DFD have had some bad reviews as they are such a big company but having Declan here on the forum is a huge plus for them. The advisor i spoke to this afternoon was so nice - spent alot of time with me expalining all and went of to the accounts team to make sure of the final payment. All we have to do now is wait for the certificate of completion - again she spent time explaining it could take a while up to 3 months as the creditors have to claim there money. Thanks again to you Declan for all your help. xx
Thank you for your nice comments Jen and I’m glad we could help resolve this.
Helen - I just emailed you, I’m out of the office until Tuesday but please dont hesitate to contact if you do have any further queries.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Brilliant - I'm glad you are happy and you should have a fantastic weekend.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Hang in there H - I'm sure it will all work out ok.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I think that at least you can see some way to drawing a line under this Helen - although I have to say that I am still unclear as to whether you are paying too much in light of Declan's earlier comments relating to Derek's advice.
It will end! If Declan has emailed you to say that your last payment will be then, you should be ok.
I really, really don't think they will fail it now!
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Hi Helen
Before I left the office today, I asked one of my colleques to give you a call soon to talk this through with you and give you and answer any questions you will have. I fear my email today may not have been very clear so I hope the call will help.
Just to also clarify, the final payment date I emailed you last month is still correct and will not change.
