Questions about debt before and after IVA

[Aaron]

Hi,

When I started the IVA process I was just under £23k in debt and my proposal was for £25k, which was accepted. I'm paying £280 a month at present.

Creditor IVA Enquiry (June06) IVA Proposed (July06)
Northern Rock £6300 £6800
BOS £7664 £8200
Virgin (MBNA) £5267 £5600
Egg £610 £700
Morgan Stanley £1900 £2400
Halifax £1000 £1300
Total £22,741 £25,000
Dividend £73.87 £67.20
(not including the IP fees)

I'm looking to answers on the following:-

1) Will my IVA be amended once all the creditors have made actual claims. I only stopped payments for one month so wouldn't have got many late fees, charges, or much interest added...there is a £2259 difference in just one month???
2) Should my IP be checking that the amount claimed by the creditors is actually at the date of my IVA to check that no fees and interest has been added...Halifax were writing to me for a couple of months and applying fees. My o/d was for £1k and they kept saying I owed £1167, but this was only due to late fees after 27/07/06 so i just want to make sure they claim the £1k as at 27/07/06 and not anything afterwards.
3) The dividend looks better against actual claims rather than estimated claims - will this really have any impact on my credit file? I would be happier to see the creditors getting back more?
4) Can anything be done so my creditors know about the other creditors debts and will see more dividend is being paid to them?...this having an effect should I make an offer?
5) The fact that i'm querying this does it really have any impact now?

Basically I just want my creditors to see that they are getting back a good dividend and also hopefully this might have some bearing on my credit file.

Thanks for your help.

[MelanieGiles]

Hi Aaron

1 This balance does need to be checked out. It does seem a little high. If you guaranteed the dividend at a certain level, you will have to keep paying until that level is achieved.

2 Your IP is duty bound to check all amounts claimed to ensure they are correct. He should also ask you to sign your agreement to the claims once they are agreed, where there are differences in excess of 10% from the statement of affairs figure.

3 No impact whatsoever!

4 This is highlighted every time your IP makes a dividend, as other creditors will be able to read the schedule.

5 Yes and no! It is good that you are maintaining an interest in seeing your creditors treated fairly. But it has little effect upon you personally.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Aaron]

Thanks. I have checked this out with my IP and so far the claims have been £15,971, with one outstanding of an estimated £8200, but above as I say should be around £7664 so I think it looks reasonably ok now at £23,635.