www.iva.co.uk

Hi

I am in my final year of my IVA and I was speaking to my IVA case manager to find out the exact last date of my final payment.

She mentioned that basically I have not met my conditions i.e. 50p in every pound.

What happened was when I took out my IVA it was before the law changed regarding student loans.

So my student loan has been added with everything else. Apparently the student loans company asked for a variation to change my original 45p in every £1 to 50p in every £1 some time ago.

What my case manager is saying is that to meet my conditions I would have to pay £1000pcm to complete on time which is no where near possible I can just about afford £420pcm.

What can I do? It seems so unfair to have my IVA extended no-one told me this would happen noone told me years ago that my payments where not enough to ensure I complete on time - if they had maybe I could of done something at the time

Any advice? All my case manager has said was that she would talk to an IVA practitioner next week.

welcome to the forum
not sure really but they might add another year or six months,seams un fair they didnt warn you of this? im sure some one will be along to help soon

I would read your report to see what it says, but it does read as though you have to reach a minimum dividend.

Speak directly to your IP to find out exactly what is happening.

What company are you with?

Did the SL Company request the modification at the initial creditors meeting? I'm not sure they can up the anti once the iva has actually started. The dividend requirement should be on your chairman's report from the creditor meeting and on the annual reports. It may help to look over these and see exactly what they say. Mine has a progress section too; this should have told you if you were not due to complete as scheduled.

If the 50p minimum dividend was modified in thru a variation meeting post acceptance and you have not agreed to it, I don't think they can hold you to it.

I didn't think Student Loan debt could be included in an IVA. But mine is very recent. Perhaps you could years ago. My IVA was approved in Dec 2010 and my debt to the student loans company could not be included.

It was included a few years ago, but not now.

My iva went thru just on the changeover period when the SL Co and HSL had been rejecting absolutely everything for a few months. I'm glad mine are excluded as they will show up on my credit file as being paid properly as per the contracts. And they finish just a few months before my iva...just in time to help with the credit record rebuild!

Oh I don't know I got these reports but never understood them [:(]. I'm with kingsgate. I'm not sure when the modification was made I'm pretty sure it was afterwards who knows I'll have to check.

According to my case manager the SLC are being really difficult which I can understand - I never wanted my SL included in the first place but I was told that I had to as it was classed as a debt otherwise I couldn't take out an IVA. Than a yr or two later the law was changed not to include it. I wish it hadn't been as I wouldn't be in this mess.

I can't believe at each annual review they never mentioned I would never complete on time what's the point of me paying these fees to them.

Defo worth digging out your file and checking for any mention of the modification. Then have a chat with your IP about why it wasn't explicitly explained to you. Hopefully one of the professionals will be able to shed some light on Student Loan practices over the past few years and whether they could modify the agreement after acceptance. You did nothing wrong in including the loans...we can all only go by the rules at the time. Initially i was disappointed mine couldn't be included as it would have kept everything nice and simple.

At the time you entered into your IVA the Student Loan was rightfully included. The only way a modification could have been accepted to increase the dividend and thus extend your repayment period was with your express and written agreement. Check your Chairman's Report for details of this - and in the unlikely event that you were not consulted about this you may have an IVA which is void and a complaint to make against your IP - the downside of which is that you will be back to square one.

If it takes a further two or three months to get the thing finished, I personally would crack on with that being pleased that you still managed to get 50% of your debts written off through the privilage of an IVA.

Thanks Melanie you are always so helpful.

My issue is that I have 12 months to go. About 6 months ago I said to them hypothetically speaking if my payments did not increase than it would just be my regular payments plus some arrears that would need to be cleared for it to be all over on time. To which the person I spoke to confirmed - now out of the blue they are saying no that due to a variation you won't meet your 50p in £ - I really angry to be honest because when I've asked I've not be told anything honestly by my IP.

I have said to them that my parents will give me £6k or £8k at a real push to put forward a full and final but apparently I need £12k for a full and final

Will just have to see what happens on Monday with the IP practitioner

I am may be missing something here - minimum dividend requirements don't come out of the blue - they are either an integral term of your own arrangement or are modified to be at the creditors meeting with the agreement of you and your creditors.

If there has been a mistake here then you may have grounds for a complaint - the upshot of which is that the IVA can be voided if that is what you want. I would definately get your IP to provide you with evidence of your express agreement to this term before getting too upset - the most likely outcome is that you did agree to it without really realising the implications at the time.

Hi - as Mel says, you need more info from your IP so you are clear in your mind and see evidence of exactly what happened and when.

If you do have grounds for complaint, think carefully about whether you want to void the agreement as you would still be liable for the outstanding 55p/£. Carrying on for a year to realise an extra 5p dividend may be your best option even if it is disappointing.

Hi LilMissTrouble,

I believe you have already contacted the office but if you have any further concerns please do not hesitate to call the usual free phone number.

Thanks