I've just had my second annual review and they decided to keep my monthly payments the same. Unfortunately, I've just had a call saying that one of my creditors has just sent back a proof of debt that includes all the interest from my loan. They want me to extend my IVA for a year.
My understanding is that they cannot add interest after the date of the IVA and, surely, you have to agree that the figures are correct and tally with your understanding ( and the figure you put forward at the start) ( again, surely, this was checked by your IP). Often these figures are slightly out, but not usually enough to tip the balance of the IVA.
I would, first of all, get a breakdown of this figure to see why it is so wildly out.
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 Foggy - you need to ask for further details/.
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
The debt in question is to Moneyway loans. The initial loan amount was £5000. They apparently have only just now sent back the proof of debt, which amounts to £6800 (interest). I didn't think they could just say they want more when the IVA was already in place?
Should I ask for a letter outlining why they want this amount?
Agree - if it was included in your IVA I don't see how they can include interest.
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
The interest on loans is often front loaded meaning the creditor can claim for the entire amount due. You need to ask your IP why they did not list the full amount as now effectively you could be in breach. the debts must have come in much higher and this could lead to the IVA being extended to achieve the original dividend. Had the debt been listed correctly then this would not have become an issue now.
So Michael, I would be required to extend for 12 months? Even though this was a mistake by the creditor (Moneyway) and IP (Knightsbridge)?
I've just asked for a breakdown of the costs over the phone and the girl (who was very understanding) said she would speak to the supervisor. However, she didn't have any more information than that.
Basically, I just want to know whether I'm required under the terms of my IVA to pay the "new" amount. Or, is it too late for them to claim this back?
Did moneyway vote at the meeting as I would be surprised if they got their own balance wrong? You should speak to the supervisor and ask them why the balance was not listed correctly but ultimately it may come down to you.
