i have been in iva for 1 year i pay 272 per month
in the year there as been ppi payments of around 37k
my starting debt was 51k i have asked for a balance and they say i still owe 37k with all there charges on
i originally thought this was a free govt scheem
is there any one i can show the statements to to check
basically my debt level is now higher
can i leave the iva and take debt back os
IVA's have never been free - the company administering it need their fees.
You can let your IVA fail but the creditors may well add back the interest they have so far 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
Sorry to hear you didn't quite understand what you were getting into here.
You always owe the total debt plus statutory interest and costs during an IVA.
However most people can't actually afford that so only pay what they can afford for 5/6 years and the balance is then written off.
In your case, without the PPI refunds, it sounds like you might have paid c£16k towards £51k of debt had the IVA ran its course.
At the moment it wounds like if you pay all your contributions and add the PPI the IVA estate will have received c£53k.
Creditors still won't have received 100p/£ because of the costs involved.
At the end of the day you are still only paying c£16k towards a £51k debt out of your own pocket.
If you fail the IVA you are at risk of being made Bankrupt. If you have assets, such as equity in your home, you are at risk of losing them. You will also have to pay similar contributions into your Bankruptcy estate for 3 years, which is not much different to the 4-5 years you have left in the IVA.
Your credit rating will also be affected for 6 years from the start of the IVA.
If you have assets to protect or a certain profession that you can't go BKPT with then I would think continuing with the IVA is the best way for you.
However, if you don't have any assets BKY might be the better option for you.
Seek advice on the best option for you going forward and if in doubt speak to your IP.
Last edited by Lisa Thomas on Thu Feb 11, 2016 11:30 am, edited 1 time in total.
To be fair there is still a lot of advertising that takes place by IVA companies that does state it is a new or free government scheme.
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 think the main thing when people start the IVA route they just want an end to the stress that goes with being in debt. When we took ours out we were not told in actual pounds the amount of fees but a percentage figure which sounds reasonable until you realise how much has actually been paid in fees. The government should have a standard fee to be charged so companies can't charge extortionate fees.
15, 23 or 30% have been quoted with the lower end being suggested as why some companies fold.
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 sympathise - when I was sold my iva the nominee told me that new government legalisation allowed for this agreement and that it would not cost me anything at all as all fees would be paid by my creditors. This lead me to believe that all I would be liable for would be my actual debt - of course it is written down in terms and conditions which I now know inside out but it is not the way it was sold to me. Also I very much doubt I could have understood all those t and can - I am sure they are second nature to some but I had no clue which made me very vulnerable. I was pressured into signing the dotted line so as not to have to pay following months bills to credit cards etc so my head was scrambled . However 42 months on actually it probably was the best option I now am looking towards a debt free future assuming I can't remortgage . I will have paid back £20000 for a £26000 debt so yes happy - as for ppi if I have any they're welcome to it
The fees come out of your payments as obviously the IVA companies need to be paid for their services.
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>Originally posted by lifenoteasy
15, 23 or 30% have been quoted with the lower end being suggested as why some companies fold.
The impression I get -- and it is merely my impression -- is that the creditors generally amend the fee structure to 15%. Those getting 23 and 30 are larger and more "creditor-centric" firms.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Basically the more income you generate the more you get paid but that means the ip is no longer without bias.
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 my opinion if I have had to pay say £10,000 to an iva company over six years of an iva to get me back on track and out of debt,to me it's money well spent.I think a lot of people think an iva is an easy fix,it isn't and it's a long road.My iva company (FJ) imo has earned it's fees
Today 1st of December 2016 the vultures finally flew away
The company I have been transferred to has yet to demonstrate anything.
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.
