www.iva.co.uk

hi i know any interest made is for creditors but in the event of a final year struggle like polars post if you could ask for a f+f would this interest made over the term be added to a total of what you would need to offer creditors??for example if you had paid 20k and made 3k in interest would the offer to creditors be 23k plus the offer?

because if this is the case then surely polar has enough funds to pay the creditors in full with 5 months remaining or am i talking gogaligoolk[B)]

Good point - the interest is accruing in the estate for creditors - in Polars case he is technically in breach - but if he is only a couple of payments in arrears and the five years end in December 2008 either his arrangement is extended (by doing a variation) to cover the arrears - so that creditors get paid what was expected plus the interest OR if Polar is in no position to continue then he can ask his Supervisor to convene a Variation Meeting explaining his personal current predicament - noting that the estate has £3k in extra interest and allowing for the IVA to be brought to an end, excusing the final payments - hence successful arrangement (as varied).

thanks for quick reply so there is another avenue for polar in the event of being unable to add extra monies good luck polar

Hi all,

I currently pay £850 pm.

I can continue to pay the £850 pm until the IVA finishes. The five year mark is December plus the 3 missed payments.

I realise I am in breach of my IVA but it semms that 99% of IVA's allow for 3 missed payments so I feel a bit seen off that mine says 2.

CAn my IP just write a 5 year report stating that I have missed one extra payment over the allocated amount and that this will be made up or will he have to have a variation meeting putting me in the position of my IVA posibly failing. (by the time the meeting is called I will have probably have completed my IVA)

I have currently paid £49,000 over the last 4 years and 10 months. Not sure how much interest would have acrued.

They may call a variation meeting but i wouldnt think your creditors would want to see you bankrupt this far into the IVA. They will probably just agree for missed payments to be tagged on to the end of the term.

hi polar get in touch with your ip tell him of the problems you are having making the payments up and ask if a variation would be possible to offer a f+f the interest would then be equated into the figure and ask for a settlement figure you might be surprised by the amount you will need to add to conclude the iva if any monies are required

i know creditors will be wanting full payment + interest but the chances of failure which i dont think will happen may sway them, you are only asking a question of the ip at the end of the day and you are paying him well for it

Your IVA was an old one that pre-dates the Protocol ones. Yes it is a bit harsh but those were the terms almost 5 years ago - and well done by the way - only missing 3 payments. Your Supervisor must either get permission from your creditors to request cancelation of the 3 month arrears or to add on at end and run your IVA until end March 2009. I believe creditors will agree to both - but it depends on your personal financial circumstances as to whether they will agree to the write - off of the 3 missed payments. It is up to you and your IP to make out a good case.

A quick question

I belive the creditors are paid a dividend at the end of each year,
so if they decide to make me bankrupt at this stage, surely they will get extra money out of me i.e. the previous 4yr and 10 months worth of payments plus what ever the courts decide to make me pay for a number of years.

I think you may be worrying ahead of yourself here. You have done so well to get this far and i am sure your creditors will agreee.

Sorry if you have already told us but...what has your IP said about what will happen?

Creditors are paid a dividend as often as it is stated in your proposal. Old cases usually yearly. The new cases probably quarterly or even monthly!
They won't decide to make you bankrupt on missing just 3 payments and yes your Supervisor should have been making dividend payments regularly. Have you had copies of your Annual Report?

All the experts on here have said the same it is 100% sure you will not be made BR when your iva is due to conclude in december ,1000`s of iva`s fail after a few months or a few years and even then they are not made BR its usually a dept plan they fall back on.If you are able to continue making the payments i dont see any problems

Yes I have had my yearly reports.

I am going to try and make up enough payments so that I may be £600 short at the end of the year. (My Monthly payment is £850)

This technically is not a missed payment but a small short fall..

We shall see where this leads. Annual reviews at Xmas are never good

Does you Yearly reports indicate what has been paid out in dividends so far? If so how much has been paid?

good luck polar i would still talk to your ip about a possible variation i would think the interest will add up to quite a large amount and if you can manage the 2 months left at £850 that might be the end debt free life[:)]

David Mond wrote:

Does you Yearly reports indicate what has been paid out in dividends so far? If so how much has been paid?

I will have to dig out my paper work. I will get back to you ASAP.