I have been in an IVA for three years and not sure if I am being ripped off. I am looking through the paperwork (I am visually impaired) and the debt that was owing (a certain amount was written off). Looking at what I have paid so far and what I am due to pay over the next two years (the debt was £9,000 and I will have paid back £12,000). I am querying that.
You owe the total amount of the debt during the IVA and pay back what you can afford. Sometimes creditors get more than originally on offer and indeed other times they get less.
It could also be that included in the calculation is the IP fees so if you are repaying £200 per month over five years £9,000 goes to creditors and £3,000 on fees and costs.
For a debt of £9k I am not sure that an IVA was the correct solution in the first place, but there might have been good reason at the time.
In an IVA you always owe the full original debt, plus fees and statutory interest. when this amount is achieved before the end of the IVA term the IVA will finish early.
Only at the end of an IVA is anything unpaid written off.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
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
What was your total debt pre iva? Your original post mentions some being written off ... was £9000 the agreed minimum payback after your creditors meeting ?
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
