IVA 4mths to go but they want an extra yr. Expected this to be �5488.Own house let & living in cheaper. Have state pension & a rental property. Morts expire next yr.Was going to sell & pay them. Can't remort. Told if want F&F nearly 37k.This plus already paid is more than original debt. Will be forced to sell lose income & home wanted to return to. Had major surgery & in bad state. Too shaky to answer phone. Polite letters explaining all, never replied to. Unpleasant on phone. Have complied with all. First time ever in debt due to business/recession. Absolute nightmare.
So sorry to hear of your problems. Send them an email and also a letter via recorded delivery so that you know they have received it.
When you say that you have paid in more than your original debt, do you mean the total original debt or just what the IVA said you needed to pay back.
Which company are you with?
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I am assuming the figure they have given in a settlement figure, which includes enough to cover original debt, fees and interest.
If you have had a years extension you are entitled to make a Full and final offer equating to the monies they would be getting over the year to complete the IVA, then sell the house after completion, so the equity is yours.
If you do sell within the term of the IVA they will expect the larger sum.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thanks all for replies.
It would be more than the full original debt at 37K.
Should I just mail & write saying will pay final yr?(hoping I can find it) or do I have to go through complaints, which might take too long.
Info greatly appreciated.
Wondering how to word email so that I get it spot on.
They're driving me over the edge. All I want to do is pay their final year & get them out of my life & have a peaceful sleep. I need to get fit before more surgery & am not exactly a spring chicken, even if I'd like to think so. Someone called them for me & had frosty reception.
Hi - I wonder if something has got lost in translation here.
If you have 4 months to go with normal contributions and know you cannot remortgage then a 12 month extension will usually apply.
However if you have told your IP that you are going to sell your house then all of your equitable interest will be due into the IVA and you won't see any back unless the IVA estate has received enough to pay the balance of the debt, interest and costs.
Retract the statement about selling the house then either let the IVA play out for 16 months more of contributions (you will then be free to do what you want with your property and keep the equity) or put forward a F&F offer from a third party to settle the 16 months worth of payments.
Hi Lisa- No point selling at mo'. If I raise cash by selling car etc, would they accept that as the last year. If so, how soon after could I sell house.
to buy another car,need it but I will do anything to get these people out of my life. Huge fees & they never once replied to any letters. Also, would a third party have to divulge their details? I am too ill to deal with them. Since they knew about me initially looking to sell, they are keeping me tied in until mortgage finishes & knowing I can't remort they will claim. This would take part of my income away. Couldn't do that if I were in any other job. I have to be able to move on as I need extra health care. Not getting this means living with pain. No major appliances,worst depression & they couldn't care less.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
I'm afraid if the funds are coming from selling the car this will likely be classed as an asset to your estate that is due into the IVA pot unless you can argue the car was exempt and you are free to do what you like with it.
The key here is to open up a line of communication with your IP.
If you are ill (sorry to hear that) and your disposable net income has reduced then they should be able to re-evaluate this. They can then either use their discretion to reduce, ask creditors to accept a reduction or even ask creditors to accept payments to date in F&F.
Given the communication problems you say you have had to date I suggest you send them a written letter by recorded delivery. That way you can follow up with a formal complaint if necessary.
If a third party is going to help with a F&F lump sum gift as settlement your IP will probably ask to see evidence the funds are theirs (copy bank statement) and possibly some ID together with a supporting letter confirming the funds are only available for settlement (and only payable into the IVA if the variation is accepted by creditors.
Lisa, considering your last message, selling
car pointless as will not cover all anyway,I was willing to try. It seems unethical to me that if someone else pays this, it will be one final years payment, but they were asking a personal F&F which would bring amount to thousands over original debt if I sell house. They have me completely hemmed in as I won't be able to remortgage, so I won't have my home to return to & lose my income. This IVA is not a solution, it's a life sentence. I will write, recorded & say property sale off, which it is & see if there is any way out. Interest etc. was never mentioned to me. They hadn't even registered an interest in the house until I said I might try to sell. The general public are not legal experts, they are also in a very vulnerable state at the start of these so called solutions. The creditors not getting much due to fees. I would say to anyone be very careful what you sign, as I was only looking for a loan when they approached me & signed me up like lightening & now am in a nightmare of health problems.Don't believe their info' leaflets on caring & understanding. Certainly in my case..NOT! Calls were met with rudeness & letters ignored.I'm too terrified to name them. They trade on the fact that people are too ashamed of debt to push complaints. On pills for depression. Well over retirement age. No point.
First ever time in debt. I am paying with my health, my life & unable to afford extra treatment.
I'm sorry to hear you are not feeling well and your IVA is causing you so much stress.
Let's say you decided to sell your house tomorrow and there was significant equity in it, you would have to pay those funds into the IVA in order to pay towards the balance of your debts.
IF (and only if) there was enough equity that everyone can be paid in full then the terms of your IVA will likely state that in that case statutory interest and all the costs also have to be paid in full.
Any surplus would then be yours to keep.
However the point of most IVAs is that they let you keep your property.
Towards the end of the IVA the equity position is established and (usually) if you have equity of over £5k then you have to give something back to the IVA in lieu of this.
The norm is that an IVA is extended by one year so creditors get a little something back and in exchange you get to keep your property.
After the IVA has been closed you are then free to do what you want with it and could therefore sell it and get to keep all the equity yourself. depending on the figures involved you could be a lot better off.
In your case I suspect what has confused the issue is you have told your IP you are selling the house. This means they expect all of the funds to be paid into the IVA.
So first of all tell them you are not selling the house. This puts you back to square one again.
Then you need to establish your equitable interest if you haven't already - do you know how much it is?
Also seek help from the CAB or a local charity who can help you liaise with the IVA company and get your side across.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
Thanks. Have sent brief letter as they know all my details & have never once responded. So, it's in registered post, too expensive really, but needed to do something & they have lost enough paperwork in past. Didn't even inform me of the correct increased amount at one stage,only when I 'phoned them, so made me look bad. It's now all correct.
I was not told about interest etc. Certainly didn't expect to pay more than original debt & if this is going to finish me off, I will make sure they are named.
