I have just reached the final year of my IVA. When my IP has carried out my latest annual review they have discovered an error on their part. The error being I get paid 4 weekly and they have been basing their reviews on a monthly income figure. In short, even though all previous reviews have said no additional monies have been due into the IVA, they are now saying I do owe additional monies going back 3 years amounting to £1000's. I have always been up front and honest and sent in my payslips 4 weekly and even though the error is on their part they say I need to pay the money in. Can they expect me to pay the money, which obviously I don't have now, when the error lies with them?
This is a huge oversight and I am surprised it has taken this long for that to be picked up if wage slips were being provided. I believe it would be unreasonable to expect you to have the funds to pay this off in one go but your IVA may need to be extended. That said, even then it seems somewhat unfair. Was it stated anywhere in the proposal or chairmans report the basis on which your income was calculated? If it was and you signed it then there is a joint responsibility as you will have been aware your income was 4 weekly but the basis of your IVA calculation was monthly.
You do need to go back to your IP to get this matter resolved as it would be a great shame for your IVA to fail for this reason after almost being at the finish line. I am sure some agreement can be come to but follow it up if you are not happy.
Keep us posted.
Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.
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Excellent advice from Tina - please try and work with your IP to find a solution.
If there is a problem with having to extend your IVA maybe a proposal can be made to creditors to accept the payments made to date and the final year at a higher rate (using correct income/expenditure) be sufficient to end your IVA.
As Tina says I suppose it lies with not only your IP but the individual to make sure the information presented is correct. That said, we all make mistakes and posts like this help others to make sure they don't fall into the same trap.
I can't believe that it's taken them 5 years to realise their error! This is appalling! The income calculations should've been checked by an experienced member of staff at the outset and then again by a person in authority or by the IP themselves.
Which company is it? Whilst you hold some responsibility (you have to sign to say that all is correct), the IVA company also has a joint responsibility too. I would most certainly put a complaint in.
This should have been noticed when the proposal was drafted and certainly before now. I think the best thing would be a meeting of creditors explaining what had happened and asking for the IVA to complete as normal. You have complied and while there has been errors it would be best to close the case down.
