Hi Gordon - Do you mean you were paying token amounts prior to the IVA being put in place? If so this simply reduces the balance and affects the amount of dividend available depending on what assets you are putting into the IVA. Does that make sense?
Creditors will not give you credit for the time you were making token or debt management payments. I have had clients pay for years into a DMP and creditors still want the full five for the IVA.
As you say it was a token amount which basically recognises the debt and your inability to pay.
I would say if you can pay more than £100 per month then an iva might be an option.
Some companies say it is possible on less but you also leave yourself open to more pressure going forward to increase payments year on year.
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.
You need to take some professional debt advice and be sure to understand all of the options.
As others have said only when an iva commences will payments reduce the agreed amount.
Prior to this it will slowly chip away at the balance but likely to only pay off interest being accumulated
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
Gordon - if you're not yet in an IVA and are thinking about it I recommend you go and visit a local IP in your area for some free advice as Bankruptcy may also be something to consider depending on your circumstances.
The IVA will commence with whatever the balances are at the start date ( including accrued interest) and the token payments will probably be having little effect on reducing the debt.
I would suggest chatting to a few companies for advice on the various options.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
