When you pay into an IVA - do the IP hold onto all the monies right until the end? I get the impression from the wordings that they do! and then pay it over to the creditors in one fould swoop? if that is so - I can assume they are gaining interest on the funds? Just curious
Most arrangements specify a time period regarding distributions, many quarterly, some 6 monthly. The monies are held in an individual client account and any interest ( which is minimal these days ) is passed on the the creditors pro-rata.
In a lot of cases the monies are actually paid to an agent, who might settle with the creditor on their own agreed terms, which is often why we get the odd statement on which no payments appear to have been made.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
