www.iva.co.uk

Hi all

I e-mailed my ip on Monday requesting him to try & set up a F&F settlement,I have heard nothing back at all from him yet.My question is can the amount owed to a creditor increase after the IVA has been agreed & started.The reason I ask is that I am sure I have read on other posts that the amount had increased,my worry is that my largest creditor was the only one who didnt freeze interest before I entered in to the IVA & only last week threatened court action even though I am 12 months in !.I have based my F & F on the amounts owing as at the start of the IVA assuming that it could never increase.
Also how long do you think I should leave it before chasing my IP up again ?

Any help greatly appreciated

Regards

Dave

Hi Dave,

No, the balances cannot increase in an IVA.

I'd give your IP a bit of time to get back to you as I imagine they are extremely busy at the moment.

Ignore the court action threat - the creditor can do nothing.

Hi Dave. You may be getting confused with a post that related to a Debt Management Plan where the balances CAN increase during the term. My partner had first hand experience of this, when her original paperwork said that based on her affordable level of payments it was due to end in April 2009, and when she contacted them a few months ago she found out that the creditors had lumped another load of interest on, and it was not now due to finish until April 2010!! In an IVA however, the interest is frozen at the start.

Balances cannot increase once an IVA is in place, however if the IP has not independently validated the creditor balances used for the purposes of the IVA, then the actualy sums eventually agreed could differ.

As ever,many thanks for prompt replies !

Regards

Dave