Forgive me for being thick but PRA don't own 75% of the debt by value on the day and I assume that Tesco must have said yes.
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
New players coming in and tightening up on length of iva's to try and get best return.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
In one way you can't blame them - they want back as much as they can get.
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
Most of us did get five years originally and a lot of people who rent still do - depends on the creditor.
Mine was extended because I had equity but could not release any of that.
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
This does seem harsh and your IP should be trying to sort this out. With no house or equity would bankruptcy not be more attractive now?
A second thought would be that the IVA was extended due to a low dividend. Given that your payments are due to increase you could request that the IVA is not extended provided a minimum dividend of x was achieved within the five years. The extra payments will achieve this new dividend and everyone is happy.
Your IP should be pro-active on this and sort it out.
Good point Michael - even with an IPA then the poster would be debt free in three years.
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
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>41k no assets no mortgage. £240 spare per month
240 x 72 = £17280. plus the 5k per year extra (say half of it 2.5k x 6 years +12.5k =£29780 in payments on a 41k debt, that seems like very good p in the £ for creditors 72.6p/£
if the 5k per annum payrise was all allocated on a repayment basis for 6 years = £30k plus £240 x12 x 6 = 17280, that totals £47,280 would a DMP not have been an option with stepchange for example that freezes interest and it would all be repaid off in that time with no IVA required , was this discussed with you ? I accept DMP is not legally binding on lenders.
Last edited by longslog101 on Fri Oct 23, 2015 1:57 pm, edited 1 time in total.
My Blog details, the route I took before IVA, how I choose my firm, equity release advice (year 4-5), challenging the CRA's keeping IVA on credit file once gone from insolvency register
IVA ended August 2015. Would recommend McCambridge Duffy
The previous post was based on a payrise i didn't get, until yesterday. The £240 already included my 5k payrise.
The offer was put forward at £150 which was 13p to £1. The extension moves it to 17p to £1.
I discussed bankruptcy with my work and iva they are happy with. Bankruptcy they would have issues.Otherwise I believe that would be my best option.
I spoke with stepchange, Vincent bond and citizens advise and all said an iva would be the best option. DMP was discussed but was advised due to amount it would take 8/9 years to pay
Vincentbond then put me through to Knightsbridge.
Didn't realise I could of stated minimum pence to the £. I'm guessing this is to late to challenge now.
Nver too late as the meeting can adjourned for up to 14 days to negotiate. Tell your IP not to send out the Chairman's Report yet and try and get something agreed. The low dividend explains the extension but you could propose that if the 17p is paid before the end of year 5 or even have a minimum of 20p then the IVA ceases.
This is the kind of thing we do all the time and just because a creditor proposes a modification it does not mean you have to accept. There is always room for negotiation and that is what you are paying an IP to do for you.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by kallis3
In one way you can't blame them - they want back as much as they can get.
They're not the original creditor though; I'd imagine PRA bought that debt for a few pence in the £ and are now banking on the IVA completing successfully and their return being 'x' times higher - hence the push for 6 years rather than 5 as it nets them a further 12 payments.
I noticed much of my debt was sold on at or around the time of the IVA and I do have slightly conflicted feelings about how it all works as a lot of my feelings of 'obligation' to repay were to the original lender. I ended up paying back several companies who had nothing to do with the original debt but who actually probably made a decent profit from my IVA.
It's a win-win for them; if the IVA completes successfully they get a decent chunk. If it fails, they can pursue for the whole of the original debt...
Well after a long discussion with the admin, managers and then the IP my IVA staying as it is. The IP advised that they have to take both my view and the creditors and they believe due to the low offer that the extension is fair. (although also stated that BR would be a better option for me)
They also advised that they have never included a maximum pence to the pound.
In regards to the wage increase they are going to do a income and expenditure and have advised that due to the costs which are on the original submission and being a promotion that my expenses can increase (I think this is a bit naughty) so my payments will not increase by much - if at all.
My first payment will be November so 72 payments to go (now that seems like a long time....)
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
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
