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Hi

My husband is presently going through the IVA process. Paperwork is due to be finalised in due course. Fingers crossed that creditors will see the proposal as fair and accept!

What I would like to know is once everything has been accepted what actually happens to the debt? Does it still lie with the creditors and they receive a proportionate amount each month from the agreed monthly payment?

Or does a company 'buy' the debt; pay the proportionate amount to the creditors and they then receive the monthly payment to pay off the debt they 'bought'.

Who receives the monthly IVA payment?

Are statements of account ever produced?

Provided everything goes smoothly is the remainder of the debt written off at the end of the five year period or written off prior?

Thanks.

The debt will stay with the creditor although they can sell this on. Payments are usually made quarterly or however often the proposal states. The ip receives the payment and is then responsible for distribution among creditors. They will review this anually and produce a statement. The debt is not written off until the end of the agreement. I'm sure someone will correct me if I'm wrong!

Hi
Your right Pixie !!
The creditors will normally receive an annual dividend,although nothing in the first year or two.
The recent TIX changes have tried to change this and are trying to get payments to creditors earlier.
Remember you will owe the full amount of your debts right up until the completion of your IVA in five years time[less any dividends received from your IP]
Regards

Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

Thanks both - that was helpful.

I guess that by not writing the debt off until the end of the 5 year period is to allow for any windfall payments that may come in during the 5 years, which I can understand.

Presumably, though if there are no windfall payments and you have maintained your IVA payment for the duration of the agreement, it is then the remaining balance is written off.

The purpose of not writing the debt off is that the contract does not conclude until the last payment is made - ie in 5 years time.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp