Myself and my partner are in an IVA. We have just gone past our fourth year anniversary and are very much looking forward to next year and the completion certificate being issued.
My query is, that, we have always been in the lucky circumstance that our payments have gone up over the years.
My husband's original IVA monthly payment was £432 and now he pays £641. The latest I&E review now says he should pay £822.
My original payment was agreed at £242, my payment now is £377 and the review says I should now pay £483.
We have just received our fourth year credit report.
My husband's states that they have received and agreed creditors claims for £24,831. Already they have received contributions from him of £23,698. By the time the IVA is over, he will have added another £9,884 to the total paid back.
Mine states I have paid contributions of £13,613 and I have agreed creditors claims of £11,113. In another year, I will have paid an extra £5796.
We didn't go through a debt management company but straight through an IP.
So I suppose my question is that we seem to be paying back more than we originally agreed, a lot more but our IVA isn't coming to an end any quicker. Why is this and is this correct in your experience?
Oh, and now I have just found out I am pregnant with our third child and have asked for the next increase in contributions to be delayed for six months so that we can buy everything for the baby (as we got rid of all of our stuff over the years). Do you think they will agree to this?
The increases you describe ( assuming like increases in your disposable income over the years) is correct and normal.
We are not limited to paying back the initially agreed dividend, but as much as possible during the IVA, with it's terms. We always owe the TOTAL original debt and anything written off doesn't take effect until the end.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Hello and welcome to the forum. Congratulations from myself too.
I agree with Foggy's post, the total outstanding debt plus IP fees plus statutory interest is owed until the end. However, if you managed to pay all this the IVA would then conclude early.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
As others are saying you are liable for the full amount of debt for the duration of your IVA and should you be in the position to pay additional monies in over the term this will go towards that outstanding full debt figure
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
The extrs would be the fees -- agreed with the creditors at the start -- these days they are around 15% of the realisation, plus nominees fees, say £1000 - £1500. You need to check your paperwork to see what it says about statutory interest. But if you hit TOTAL original debts, plus fees and stat interest, if applicable, then the IVA payments will cease.
The Fees and possible sta, interest might seem a lot, but I would hazard that they are a lot less than the interest you would have been paying on the debts over the term had you not been in an IVA.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I agree with BOL - if the extra you have paid in means to you have reached the 100% and IP fees, then your IVA may be able to concluded earlier than planned - let us know how you get on with your IP.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
Well, I have had some really good news from our IP. The Supervisor and our creditors have agreed that the increase will now only apply to my husband's payment.
I only have to pay another three payments and I will have paid back 100p in the £, so will finish my IVA 9 months early - which is brilliant news.
Even better news, the clauses in our IVA have been checked and agreed so that when my payments stop in Sept/October, my disposable income will not be taken into account with regards to my husband's payments.
So his payments will continue at the rate we have agreed until May next year and he will be clear too.
It's been a long slog but the best decision we have ever made. We are in complete control of our finances now and have had a very rude awakening to our former attitude to money.
Sounds like a fair and sensible decision to me and well done all around. You can plan better for the new arrival now. You can name your IP firm if you like as it sounds like they have done an excellent job and quite often the good jobs do not get mentioned.
Even more good news! My husband's IVA will conclude two months early due to his level of contributions too. Both will have paid back 100p in the £, so we are very happy that we've paid our original debt back plus all of the related fees.
We used a private Chartered Accountant, with an insolvency specialist, as we were worried about some reports about debt agencies. We couldn't have been more happy with our choice.
We didn't have to pay upfront fees or extortionate rates and the proposal seems to be one of the fairest ones around. Would thoroughly recommend people checking out all options rather than just settling for a company with a glossy advert.
