in an iva does the monthly payment get split between the creditors every month ? do i see a statement of what the blances are each month so i can see my debt being reduced
Hi. The payments will be distributed to the creditors as per the agreement and will be outlined in the Chairman's Report. This varies from agreement to agreement.
You will get a Report annually, detailing the ins and outs. But you will not get detailed statements regarding any balances owed as these are a moveable feast during the IVA. You, in reality, owe the full amount of any debt, plus fees during the IVA and anything unpaid is only written off at the very end. Some creditors will even add interest on the notional account during the IVA ( they do not get paid this, but, I am guessing, will use these figures if the IVA fails and the debt becomes "live" again ).
All the figures you really need to worry about are the monthly payment ( make sure it is affordable from the outset) and the number of payments needed to fulfill the arrangement.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thank you foggy
am currently considering apply for an iva . if my situation improved and my my monthly payments increased and it meant my debt would be paid off before the 5 years would i be informed ?
If you hit the figure of the total original debt, plus fees and possible statutory interest ( this is often excluded ) then the IVA will cease and, yes, you will be told.
Remember the IVA will only end early if you pay the total ORIGINAL debt and fees, not the amount expected to pay over the term of the arrangement.
Purely a personal opinion, but I would suggest you have a chat with a couple of the smaller, more personal, firms.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thank you i am seeing a family friend who works for a local solicitors tomorrow but maybe it would be a good idea to speak to more than one company and have a comparison
Yes, it is always good to compare advice and to see who you feel comfortable working with over the 5 or 6 years. Does your friends firm have a qualified Insolvency Practitioner ?
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
All interest and charges cease at the date of the meeting of creditors and while there is a possibility of statutory interest this is quite unusual. There are fees to be paid from the IVA 'pot' but if the debts are repaid in full the fees also need paid. However, even if you did repay the debts in full plus costs this is at a level based on affordability over time and would likely be less than the cost of a consolidation loan.
The money is distributed once there is sufficient in the 'pot' to justify payment although quarterly is the norm. However, HMRC for example specifically request payments are made annually which keeps their costs down.
Finally, many creditors issue statements each year showing payments made from the IVA but your IP sends you an annual report which makes easier reading. This details all receipts and payments including those creditors who have not claimed and it is easy to see exactly where you are.
As Foggy says get some free advice from an IP firm who will be able to answer all your queries.
