extension Confusion

[LErobbo]

Apologies in advance for the long first post. Thanks if you make it to the end and can offer any advice.

I am currently in an IVA. I won’t name the company yet but I can’t say I have been happy with the any of the service throughout. If I’ve sent an email I've had to chase for an answer, if I've called to ask a question I find they are vague with answers and when I ask for further explanation I feel that I'm asking a stupid question, anyway I digress. My IVA started September 2009, so 60 months would take us to 2014. In October 2013 I started a payment break due to being on maternity leave. So I was informed this break would be added on - which is fine and I understood. 9 months later when I returned work it was only part time so my monthly payment had to be reduced, when I discussed this with them over the phone I'm sure I checked the IVA wouldn’t be extended any more than it had been, and was told no. So I expected the IVA to end this September 2015, when I called to question I was told that the IVA had been extended a further 12 months due to reduced payments. Now this bit is my fault but when they sent through the paperwork after my maternity leave I didn’t read it properly (no excuse but mainly because I never understand all the jargon etc so I usually just sign things and return - bad I know!) and on this paper work it did mention an increase of months! So you can imagine I kicked myself - I took the word of the guy I spoke too when I re arranged my lower payments! I'm sick to the back teeth of this company so I've questioned how to finish it early and get out of it, whether to fail it etc etc. I can pay £1300 to finish it early which may be an option. My question is the amounts I have already paid in.
So when I got the original proposal it stated total unsecured debt £16,665, total contributions over 60 months £13,368.
Now I’ve worked loads of overtime and received bonus so I’ve already paid in a lot extra (which I do understand is part of the agreement) The last statement I can find is from September 2014 and I have paid in as follows
Voluntary contributions £11,385.15
PPI £3119.14
Additional income £6309.87
Paymex refund £88.16
Account interest £1.12
Total £20,903.44

So what I don’t understand is - I have already paid in over £7000 that what was projected at the very beginning of the IVA so even with reduced payments for the last few months its still over what was projected so can they really extend it so another 12 months when they have received so much extra? As I'm only part time now I'm beginning to struggle with my monthly payment, and could really do with freeing up this cash?
If I'm really stuck in it for this extra year - I would love to not be with the company I am with - is it possible to change this?

Sorry to waffle just trying to give you a full idea

I'm just fed up with company I am with. If anyone can offer any advice I would really appreciate it, and if you need to know more please ask

Thanks in advance

[Foggy]

During an IVA you always owe the full original debt, plus fees and possible statutory interest. The IVA will continue until it's projected end (including extensions) or the figure mentioned above is hit.

Very (VERY) roughly on a debt of £16,665, you would be looking to pay in a max of around £22,000 - £23,000. So, your offer might get you there.

That all said --- the IP would probably have had discretion to reduce payments by 15% without having to add it on at the end. So it strikes me that they are not being particularly helpful (unless they haven't written that clause into the agreement).

[luluj]

Ok ..i read it ! Unfortunately you cannot change companies. The amount paid to date will include the IP fees as well .. it might sound alot byt imagine what the interest charges would have been had the iva not been agreed !
You have come so far .. don't let it fail now. For the sake of £1300 or another few months it isn't worth going back to how it was with creditors ringing and chasing for payments etc.
Find a workable solution so you can end this part of your life !

[Michael Peoples]

I agree that you have done very well and pity everything has not been explained properly to you. A settlement would likely be acceptable to creditors so this would seem the best route.

[Lisa Thomas]

Hi. I read it and now need a rest! Although you paid extra due to overtime etc, as Foggy points out that was due anyway. It doesn't get knocked off your contributions, it gets added. Can you 'borrow' £1,000-1300 from a friend or family member to get it done and dusted?

[Radish]

An IVA can be a bit of a rude awakening. I know it probably was not explained at the start. Any company your with would be obligated to try to maximise the return to the creditors - that is their responsiblity. One you get over the line you will be glad you did it and wont ever look back.

[LErobbo]

Thanks all! Appreciate it!

I do understand that I owe as much as possible to be paid in which is why I always took overtime etc!

But it makes me think why I even bothered! If I'd of done no overtime, they would of revcieved less and if I'd if not needed the extension break this would of been over 12 months ago!

I know it's a lot of what ifs I'm just thoroughly fed up with it.

I'm tempted to see if they could offer a full and final now, if not my options is to borrow the £1300 from someone and try close it that way! I'd like to finish it as early as possible so I can try to re build my credit rating in the hopes of getting a mortgage in a couple of years! If I still in the IVA another 12 months I'm just prolonging this!!

Thanks again
X

[Lisa Thomas]

If you do 'borrow' from someone don't word it that way to the IP as you're usually restricted from getting credit over £500! Make sure its referred as a 'gift'. Best of luck.

[lifenoteasy]

Good advice from Lisa.

Also any full and final process can take up to 3 months with some companies so work on what can get you sorted the quickest.