What happens if I come out of my IVA ?

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Jean.89

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Post by Jean.89 » Wed Mar 05, 2014 8:20 pm
hope someone can answer these Q if I came out of my iva would I be able to arrange payments with my creditors and would I have to pay all the fee's to the company who arranged it and would I still be on the insolvency register.
 
 

MelanieGiles

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Post by MelanieGiles » Wed Mar 05, 2014 8:32 pm
You would not be on the Insolvency Register, as the IVA would fail and be closed down.

You may have to be outstanding IP fees, depending upon the terms of your IVA proposal and terms of engagement with said IP.

Nothing to stop you then making arrangements to pay creditors directly, but if this would take longer than the period left to run on your IVA, where is the perceived benefit in going down this route?
Regards, Melanie Giles, Insolvency Practitioner
 
 

Foggy

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Post by Foggy » Wed Mar 05, 2014 8:39 pm
Remember that your creditors will take the opportunity to add back on all unpaid interest and, possibly, other charges, so your debt would probably be a fair bit more than when you started the IVA.

You would also be open to any recovery action your creditors might consider employing.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
 
 

Jean.89

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Post by Jean.89 » Wed Mar 05, 2014 9:02 pm
I had been on a DMP when the company phoned me saying I should have been in an IVA I didn't know what that was but it was explained briefly. I had still been making payments to my creditors before I'd embarked on the DMP. I felt as though pressure was being applied to go forward with IVA which, in the end I did (feb 2014) and I don't feel it was the right thing to do. My debts were quite small in comparison to others but if I'd been in a position to pay more I could have and it would have finished sooner as it stood on the payments I'd been making it would have finished within 2 years and 10 months instead of 5 years.
 
 

MelanieGiles

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Post by MelanieGiles » Thu Mar 06, 2014 1:08 am
Which firm are you with Jean? And did the DMP company refer you to another firm for the IVA, or was it done in-house?

You can also pay higher payments into an IVA to reduce the timescale of the arrangement if you want to.
Regards, Melanie Giles, Insolvency Practitioner
 
 

ClareSilver

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Post by ClareSilver » Thu Mar 06, 2014 8:39 am
Do you feel like you have been miss-sold the IVA Jean? Were the features, benefits and implications of an IVA explained to you in full? When you were in a DMP, were interest and charges frozen by your creditors at all?
 
 

Jean.89

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Post by Jean.89 » Thu Mar 06, 2014 12:04 pm
Hi Melanie,
first of all thank you for replying.
I'm with Harrington Brookes and the change was done in house. I'd asked before the creditors meeting if I had extra money left over in the month I could pay it into the pot and they said yes but if I had more than £500-00 then it all would have to be paid in. Ok then that's fine but after the creditors meeting another person phoned to tell me the iva had been accepted which I thought was great and I asked about paying in extra if I had it then the iva would finish sooner she said no it would still be over the 5 years. Now confused and feel as though they are looking out for their own affairs and taking advantage of one very confused person.
 
 

MelanieGiles

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Post by MelanieGiles » Thu Mar 06, 2014 10:48 pm
You are most welcome Jean

Firstly, if a budget had been set for you to pay in an affordable sum each month, then how are you able to pay over more. Do you perhaps earn overtime, commissions or bonuses at work, or would this be funds paid to you by a third party?

I think the person you have spoken to at your IP firm is confusing this issue with the windfall provisions, and the one you spoke to who told you you could not pay over extra money is not correct - assuming that you could pay all of your debts off in full during the term of the IVA. What they might have been sauing is that if you are only say offering to pay 25% of the debt over a five year period, let's say at the rate of £300 per month, giving total funds of £18,000, when you owe £60,000 - that you cannot finish an IVA by paying in £18,000 over a shorter period, but you can if you pay off £60,000 over a shorter period - hope that makes sense.

The main IP at HB is a good chap, and well worth a direct chat with if you need help and support from the horse's mouth.
Regards, Melanie Giles, Insolvency Practitioner
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