I have an IVA for two years now but when I get the yearly statements from the people I owe the debt owing does not go down even though I pay every month why is this is it right or does the money owed reduce after the six years I expected the balance to go down each month
The balance on the statements does tend to stay the same but they will have had payments.
It will all be sorted at the end when anything remaining will be written off.
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
Creditors deal with these accounts in different ways. Most simply freeze the actual account and open a "dummy" account to receive the dividend. As the actual debt doesn't have interest running they tend to leave it "as is" until written off in due course. Some do account for the dividend payments in these statements, but the amounts will be small in the early years as the fees are settled first.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
