www.iva.co.uk

hi ive been on my iva for over 4 years now, im due to complete it in january ( or so i thought ) my company ( freeman jones ) recently rang me and told me i owe £8500 in addtional money and it has to be paid with 12 months. as you can imagine i'm fuming as it now appears that i wont be finshing my iva in january after all. It is impossible for me to repay that money in that time frame i would need about 3 years. can anyone tell me if this is legal or is there a loophole where i can get out of paying this ridiculous amount. thanks.

Hi hicko and welcome to the forum.

Have FJ said why they are asking for this money? Have you had a payment break or not paid overtime across or had a reduction in payments?

hi thanks for replying. i have pay rises at work and worked overtime but i only work overtime if i need the money, i dont work it to give it away [V]. i have never missed a payment in the 4 years and 4 months ive been on it. now they are saying they are going to issue an order of breach. what should i do i cant pay the addtional amount its impossible. i know im goin to fail my iva now. what should i do?

It may be that you should have paid some of this overtime across to your IVA. Did you have a clause in your Proposal? I've have a look to see. Did you pay any of your payrises across?

hi no i never paid any of the pay rises across i was living with my parents when i took the iva out but now i live with my partner so as you can imagine my expenditure has increased 10 fold. they have reviewed my expenditure and wont agree with what i have put. i pay all the rent but they will only accept i pay half the rent so in there eyes i have £280 extra a month that i can pay into my iva when in reality this is not true. is cancelling my iva and dealing with the creditors myself the best option here. i.e i make them an offer of what i can pay a month.

I certainly wouldn't recommend failing the IVA at this point if you could avoid it - it is a shame to have come so far.

Sounds to me though as if some of your extra income should have been paid across during the IVA although you should have been notified of this before now.

Does your partner contribute to the household expenses at all?

yeah she does, she keeps the car and other things going. i was 19 when i got into all this debt £23500 over all which is pretty irresponsible of the creditors as well as myself. i know that i cocked up when i was younger but i want this to finsh now so i can get on with my life. we are getting married in september and they have told me that i cannot put any money in my expenditure towards this, how is that fair. i know burying my head in the sand isnt a good idea but its the best one ive got at the moment.

Hicko37 - its not worth failing the iVA over this - if you do - dont forget the creditors may want the complete total of money back + interest.
(NOT THE IVA PROJECTED AMOUNT)

Maybe worth extending the IVA for another 12 months. If your partner cant pay her share of the household expenses - then you need to be able to justify why this is to you your IP

Whilst you shouldn't put your life on hold during an IVA, expenses for such things as weddings should come from savings you can make during the IVA - a lot of posters who have got married on here have done so on a budget and been happy to do so.

I agree with ginger that perhaps extending for a further twelve months might be a good idea.

i have mentioned to them about paying what i pay now for another 12 months but they said they are unwilling to write off any of the additonal money. in my agreement is states that my iva cant go beyond 72 months. does this mean that if i can get them to accept the 12 extension then the money has to be writin off. all in all i have paid back £12000ish so far so if i add on the £8500 extra and the fees £5300 then it works out more than what i owed in the first place which surely cant be right.

Hi Hicko - you will all owe the whole debt/fees and interest until the IVA is concluded. dont forget if this debt was not entered into the IVA - the creditors would have added interest /fees etc to it.

May be worth sitting down with your partner and working out a household expenses budget and working out who pays what etc.to see if any further disposible income can be released to ensure your IVA completes