www.iva.co.uk

There is a maximum amount that you should pay into an IVA right? And a limit to how much you should be made to pay per month so you don't pay over what you owe in full?

As in if your full debt plus fees is £21,000 then you shouldn't have to pay more than that? Because every time I ask a question about limits and total money owed, my company PayPlan just seem to brush me off and avoid answering my questions, as if they plan to take me for every penny they regardless of how much more than my total debt + fees it is. Currently I am scheduled to pay £26,000 which is £5000 more than £21,000. And they show no intention of giving me a limit or early completion, so if I get another pay rise each year they will just take more and more.

The maximum is always total original debt plus statutory interest plus fees

You would need to hit the £33k mark to come out of it having paid 100p in the £ etc.

It sounds like you were not fully informed of everything.

How long have you been in the iva and do you own your own property as that will impact as well.

I do not own property. I am 2 years into my IVA and have paid £6300, I have 4 years left at £388.84 a month. How much more should I expect my monthly payments to increase? Is there a maximum?

On another note. I am expecting an inheritance next year. I wanted to use it to clear my debt and have money left over to enjoy. However PayPlan won't tell me how much I will have to pay until I tell them how much inheritance I get, which makes me feel they are just waiting and plotting to see how much they can take off me regardless of how much more than my total debt I receive.

You are entitled to ask for a figure to clear the IVA in full. Some firms do not charge statutory interest whereas others do and this would make a big difference to the total payment as it is an extra 8% per year. In addition the IP can then charge an extra 15% fee on top of the statutory interest so this can mount up.

If you were one of our clients I would say about £20k would clear the IVA. This assumes a nominee fee of £1312.50 as your payments would have started around £262.50 and supervisor fees of £3150 assuming 15% on top of total repayment. Add in out of pocket expenses and subtract what you have already paid and £20k would not be far off.

However if you start to add statutory interest then next year you would need to pay an extra 24% i.e. £5040 plus £756 extra supervisor fees so you would need nearer £26k to clear it.

This is just rough but I hope it is helpful.

I have just spoken to PayPlan again:

They tell me there is no limit to my monthly payments, but assure me that I will finish the IVA early if I meet my full debt and that they will notify me if my monthly payments come close to fulfilling this full debt next time they increase.

However they still refuse to comment on what my total debt may be after interest. A lot of people on here have been telling me I should expect no more than £33k, PayPlan refused to comment on that too. Should I be worried?

It is true that there is no limit to monthly payments as they are based on income. If your income increases then your payments also go up so you pay more the more you earn.

I still cannot understand why you cannot be given a figure to clear the IVA as it is not a difficult calcuation to make.

This is payplan we are talking about.

By my very rough calculations £21k plus 6 years interest at 8% plus costs estimated at 15% is c£36k. You will either continue making the payments you can afford or if the total debt, interest and costs are paid off in full then your IVA will finish early.

I can understand your frustration - how will they know to tell you that you have almost paid everything off when they can't tell you roughly what the total amount is.