Hello.
I feel that I have been led up the garden path.
My debt was 27602. I will pay 60 months of 452.
27102, I have a PPi award of 1088 to inject, that totals, 28190. I have now been told that if I reach 100 pence in the pound to creditors I will be required to either release equity in my house or pay a further year to pay for fees, in total I may have to pay 33632, to cover my debt and fees. I have asked F J about this, I am always met with a defensive attitude, saying that I signed the paper work, which I did. But my paper work says 67 pence in the pound, with the fees taken from my payments.
I feel such an idiot, and that I am being milked for every penny I have. I know that I got into this mess, and I asked for help to get out. I am happy to pay my debts and get free, but not at this price.
Can I please get some advise, I am sick of speaking to sale people, who treat me like an idiot.
Unfortunately whilst in an IVA and your disposable income improves you will have to pay more. You always owe 100p in the £ and if reached and there is still payments to be made the. Statutory interest @8% can also be added but as far as making you release equity to fund fees I can not give you an answer . I always thought that fees were agreed with creditors and as such came from realisations. You need to go through your proposal to see what you signed for and take it from there.
Hopefully one of the IPs will be able to advise but it's difficult as each and ever case is different and only your own IP knows fully what is required of you .
Stand your ground if you feel that what is being asked is wrong and don't be bulled into anything you really are not sure of.
There is not much you can do unless you can show you were mislead but I am surprised your IVA was originally accepted given those figures. A DMP would have returned your creditors 100p in five years so why did they accept 67p over the same period? Was there a bankruptcy hearing scheduled and if not why did you not do a DMP?
I think there is little that you can do other than co-operate wit FJ. Even if you pay more than you original debts you have probably still saved on interest charges etc
There was not a threat of bankrupty, I just wanted to get out of debt, I have been going around in circles for years and I thought enough is enough.
I was told that a DMP would not work for me and that an IVA was more suitable, obviously more profitable.
I agree that I will probably of saved money when you add on any interest and charges that I have saved.
Its just that something does not feel right.
But I am on my way to a debt free future, so I guess that I should be more positive.
I wonder if you are with the same company as me as i have never fully understood my IVA if i am completely honest and i got so fed up of being treated like an idiot as you say, when i tried to ask questions i admit i have just buried my head in the sand and hoped to god that it would end after 60 months like it is supposed to. I have always had this awful gut feeling that it wont but i have read and re-read my paperwork and there is so much that doesnt make sense to me, Sentances that i think have tying errors as they dont even seem to be in correct English. My dividend is only 25p in the pound and from reading Michaels post above i am now very worried about that as it obviously seems very low! In fact im going to post about it and see if the kind people on this forum can shed any light on it for me.
Josu your dividend is not low and seems more like an IVA figure than Andrew's. A DMP would take you a very long time so bankruptcy would be an attractive which does not seem the case for Andrew.
If I was a creditor I would accept 25p more quickly than 67p because the alternative really only is bankruptcy and zero return.
So it looks like I have been mislead, I should of gone done the DMP route, and not the IVA.
Can I cancel my IVA and enter into a DMP instead, or will this cause a lot more grief and hassle.
Don't get me wrong I am happy to be on the way to a debt free future, and I want to pay my debts, I just don't want to be taken for a fool, and be taken advantage of.
I will stay on the IVA and just tough it out.
I should not of jumped into this, but it was sold to me well and I fell for it.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade> I always thought that fees were agreed with creditors and as such came from realisations. You need to go through your proposal to see what you signed for and take it from there.
In reply to Karen.mg
I always thought that the fees were part of the creditors side of things as well but apparently the fees form part of YOUR IVA and as such should be agreed with you prior to agreement from the creditors...
This also makes you responsible for paying them should you get to 100p in the £...
All the creditors do is agree that you can pay the fees out of the money that the IP holds...
My personal take on this would be to tough out the IVA ---- you will have paid all of your debt, plus the IP's fees, BUT you will have saved the same again in interest you noi longer have to stump up every month.
Yes, on the face of it, a DMP might have given you a better result ... but ONLY IF your creditors agreed to freeze interest and charges over the whole period (which to my mind is unlikely). Plus, with a DMP, the creditors could still go for your throat at any time, on a whim, whereas with the IVA you are protected.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
. I always thought that fees were agreed with creditors and as such came from realisations. You need to go through your proposal to see what you signed for and take it from there.
