Please help, DFD are telling me that my IVA will, at the end of the term cost me a total of £20'000 it was originally going to be £5000 surely this isn't correct??
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.
Our original amount was £39'995 and with the 15% fees on top took it it a total amount payable of around £46'000
we were advised tonight that our payments are based on 'realisations' (What the heck does that mean??) so out total cost of fees will be £20'000
Are you trying to offer a full and final by any chance?
It sounds like someone at dfd is making it up as they go along.
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.
Nope! Phoned in ref to our annual review docs and asked for the current oustanding balance, it's just so confusing where they have got this figure from #128531;
The figure you have been given is the one that you would pay if you won a million pound on the lottery and you could repay 100p in the £ plus fees etc.
What most people end up paying is far less than the actual amount owing.
This only gets written off the moment you get your completion certificate.
They have given you accurate information. - just explained it badly.
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.
I agree. This figure seems to include statutory interest at 8% per year plus fees on top of that. Realisations are basically any funds the IP gathers so in the event of a windfall you would pay your debt plus a further 40% statutory interest. The IP would then charge 15% on top of this which is around the figure you have been quoted.
Double check with them as statutory interest may not apply when the debts are repaid in full from contributions and not a windfall.
Michael - did you mean to say 40% statutory interest?
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.
Yes as it is 8% per year simple interest so at the end of the term it would be 40%. However the interest should only be calculated on the outstanding balance so any dividend payments would reduce the amount due. The 40% assumes no dividend payments at all for five years which is unlikely to be the case.
The actual amount of interest will depend on the level of contributions to debt. The higher the payments and the quicker the debt will be reducing which will then reduce the amount of statutory interest due.
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.
Hi Heidi - don't wprry about the 'balance' they have given you. You only have to worry about what was agreed you would pay, which I presume was regular monthly contributions into your IVA. You would only ever need to worry about what the total balance plus interest and costs was if you were looking to repay everything off in full. This would only happen if you received a windfall as LNA says.
Dear Heidi01,
If you are still concerned over this, please contact me via the email address in my profile so I can take a look into your case and address your concerns.
Speak soon.
Thanks,
