www.iva.co.uk

So, before I say anything else, due to an inheritance, I am in the fortunate position of being able to make payment to clear my IVA. However, on receiving the final calculation from the IP today, I am shocked to find that having paid nearly £30,000 over the past 3 years on an original debt of £38,500, I have to pay £32,800 to creditors. I had expected a worst case scenario maximum of £25,000 to pay. A daily rate (yes, daily) of 8% from the start of the IVA plus IP charges have put paid to my hopes of financial security for my old age and leaving a legacy for my family.

Hi Dobby,

It is common that inheritance automatically goes into the iva pot, so check your wording surrounding that initially.

With regards to the calculations, you can ask for a breakdown from your IP, and then see if they will accept your inheritance as a full and final to settle your iva completely. The interest and charges can be added and these will show with the breakdown.

Unfortunately you will always owe the full 100% balance plus these costs, until the account has either run its course or been paid off.

I'd speak to the IP.

Good luck

Thanks MrsR for your reply. I am speaking to the case officer tomorrow so will see what he has to say and update my post with result.

This seems very high so ask for a breakdown of the calculations. You should also ask for a variation to be called waiving the statutory interest which is often approved. This would also reduce the IP fees if they are being paid on a percentage of realisations.

Thanks Michael. I didn't know about that but I will try it.

For further information if it helps advice-wise, the interest on my original debt of £36,599.25 at 8% per day is £9,551.82 so that totals £46,151.07. Nominee fee, VAT and disbursements is £3,553.67. Supervisors fees at 15% are £9,019.89. Less what I have paid to date which is £27,342.67 (which includes c.£8,000 from a PPI refund), the balance to be paid to settle in full is £32,789.95.

PPI refund hasincreased my dividend to 82p in the £ from an original expectation of 56p in the £.

Another PPI payment of £3,750 due to miscalculation of original PPI refund has not been taken into consideration as it has not yet landed in the hands of the supervisor but is due to do so within the next 14 days.

I have scoured my documentation and cannot find any reference anywhere to statutory interest. I have waited in vain for the second day for a call from my case officer. This whole situation is making me so stressed out that my work is suffering and I am not sleeping.

Thanks for advice thus far. Much obliged.

Fight the statutory interest issue ...i inherited a large sum of money in my iva and f&f was agreed for 100% of origibal debt plus IP fees ..the stat int was waivered

I do wonder how hard an ip will push for a statutory interest waiver if they are on a % of realisations.

Best of luck to you.

Paul

Statutory interest is the "default" position and has to be specifically excluded, rather than mentions to be included. In my arrangement it was excluded in the proposal. I have seen a few successful variations to get it removed ( might lose the IP a little in fees -- but it is a PITA to calculate !).

I had to look that up - the other half would say that is me.

Technical term

Thanks all. Am going to call IP to chase and am going to fight! You've given me a boost.

crikey - that is a shock sorry to hijack your thread but to clear this up for myself - if you inherit this is a windfall and would be included in iva anyway so i dont understand why stat interest ip fees and nominee fee would need to be paid on top of 100% repayment of debt - should this not come out of iva funds since iva hasnt failed ? and windfall has been declared. asking in case this happens to me i am hoping not but my parents are 80 though in good health and my supervior fees ae a whopping 25 % since the iva was taken over by GT scarey scarey

ps - checked in my own t and cs other than it has to be declared and paid into iva it absolutely does not say inclusive of stat interest ip fees ? this is only mentioned interms of the iva actually failing

Well, I plucked up the courage to chase the IP to ask for a variation to waiver interest. Discovered that the reason I hadn't had calls returned was because my case officer "left the business". Great. Start explaining all over again at a crucial point with a stranger. Asked for the clause number in my documentation which mentioned statutory interest. The "IT system was down" and couldn't answer my question until Monday. In the meantime, I am drafting an email to ask for a variation to waiver statutory interest. Watch this space. Will post with progress.