In a complete panic about cost of an IVA

Get expert opinion. This is the place for new questions to be posted.
10 posts Page 1 of 1
 
 

Heidi.01

User avatar
Posts: 12
Joined: Tue Sep 17, 2013 2:24 pm

Post by Heidi.01 » Mon Aug 08, 2016 9:02 pm
In a complete panic, just spoke to our IVA firm and have been advised that the total cost of the IVA will be almost £20,000 please reassure me that this is a mistake?! It will be over a term of 6.5 years with the original amount being £40,000 - with a total repayable amount of approx £60,000
 
 

nicknac

User avatar
Posts: 3
Joined: Mon Aug 08, 2016 8:12 pm
Location: United Kingdom

Post by nicknac » Mon Aug 08, 2016 9:12 pm
Hi Heidi,
i am not sure your IVA company have informed you correctly or have you misunderstood what they are telling you, if your original debt was £40,000 and as long as your IVA application is accepted you will only paid so much in the pound. i think the £20,000 may be the amount they want you to paid back over the 5 years about £340 per month depending on your income.
Last edited by nicknac on Mon Aug 08, 2016 9:13 pm, edited 1 time in total.
 
 

luluj

User avatar
Forum Expert
Posts: 11333
Joined: Sun Dec 09, 2007 6:54 am
Location: United Kingdom

Post by luluj » Mon Aug 08, 2016 9:15 pm
This is clearly a misunderstanding. The costs of your IVA should be listed in proposal document. I am thinking the same that £20,000 is likely to be the amount laid over the course of the iva which includes costs. Ask them to clarify with you and for it to be broken down into repayments to creditors then iva costs.
Sharing from experiences of dealing with debt

There is a solution for everyone .... Just need to stay positive !

Look at my blog "All I wanted was a baby"
 
 

Foggy

User avatar
Posts: 33396
Joined: Fri Dec 17, 2010 11:14 am
Location: United Kingdom

Post by Foggy » Mon Aug 08, 2016 9:34 pm
An IVA is designed to allow you to repay an affordable amount over a set period of time.
To pay 100% of your debt, on a £40k debt, over 6.5 years (an odd time scale -- possibly standard 5 years, plus a year for equity and 6 months administration) you would need to pay in roughly £63,000 ( to cover fees and statutory interest ).

95% of people never make this target, unless they inherit or win the lottery and simply pay the affordable amount. Anything unpaid at the end of the term is 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
 
 

kallis3

User avatar
Forum Expert
Posts: 77167
Joined: Mon Mar 17, 2008 4:02 pm
Location: United Kingdom

Post by kallis3 » Mon Aug 08, 2016 10:17 pm
See also this thread from a while ago

http://www.iva.co.uk/forum/topic.asp?TOPIC_ID=74844
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
 
 

Lisa Thomas

User avatar
Industry Expert
Posts: 7759
Joined: Wed Dec 03, 2014 10:26 am

Post by Lisa Thomas » Tue Aug 09, 2016 1:28 pm
If it IS for their costs (unlikely) this will not be your problem - you pay back what you can afford and reditors approve the costs.

It effectively comes out of the creditors' pockets as they receive a lower dividend due to the costs deducted.

It would only affect you if you received a windfall or had sufficient funds to pay off more than the capital sum over the term as you could then effectively be paying towards the costs too.
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk
 
 

Heidi.01

User avatar
Posts: 12
Joined: Tue Sep 17, 2013 2:24 pm

Post by Heidi.01 » Wed Aug 10, 2016 8:03 pm
Thank you for your comments, much appreciated. DFD have been continually inconsistent with what we have left to pay and the end date seems to be pushed back each time I phone them. I requested a call back from an IP to discuss the matter further followed up with email but have heard nothing back.
feeling on an IVA low and just want some actual figures and a solid end date :0(
 
 

kallis3

User avatar
Forum Expert
Posts: 77167
Joined: Mon Mar 17, 2008 4:02 pm
Location: United Kingdom

Post by kallis3 » Wed Aug 10, 2016 8:06 pm
Keep pestering them!!! They will get fed up of your calls and will respond.
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
 
 

Laura.Harrop

User avatar
Industry Expert
Posts: 112
Joined: Thu Sep 03, 2015 8:10 am
Location: United Kingdom

Post by Laura.Harrop » Thu Aug 11, 2016 11:11 am
Dear Heidi.01,

Please contact me via the email address in my profile so I can take a look into your case and address your concerns.

Regards
DFD Forum Expert
Debt Free Direct
 
 

Lisa Thomas

User avatar
Industry Expert
Posts: 7759
Joined: Wed Dec 03, 2014 10:26 am

Post by Lisa Thomas » Thu Aug 11, 2016 12:11 pm
Hopefully Laura can shed some light on this for you.
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk
10 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”