www.iva.co.uk

My husband and I have finished our 5th year in out joint IVA.
As we haven't qualified for a remortgage, suprise, suprise, we have been asked to do another financial review and pay a years extension.
However one of our creditors, £30,000 out of the £76,000 owed has not come forward meaning the others will get a greater payout.
Should my final year therefore be calculated on the new debt of £46,000 not £76,000.
we have ended up paying at lot more every month then we should have. The creditors agreed to the original payback and are now going to get a lot more then they thought they would. It doesn't seem fair that they are trying to squeeze every last penny out of us at this stage. We have done our best but now face another year of high payments even though the debt is now so much lower.

You always owe the full amount of debt plus IP fees and lossible statutory interest until the end of your iva. Creditors are asked to log their claims at the outset however my understanding is they have no obligation to do this at the beginning. So long as it is registered by the end of the iva that is ok. I can recall our largest creditor not registering their claim until almost the end of our iva - very frustrating but yes you can be asked to pay the same amount for additional 12 months.
Just think what your creditor balances would have been if the iva was not in place ...significantly more woth interest added.

Hi Julia - just because your creditors are getting more than was originally estimated does not mean you get released from your IVA sooner I'm afraid. Although a p/£ would have been estimated originally this is just an estimate and until you have finished your IVA you always owe the whole debt, costs and usually interest too. It's not different if you received a windfall - you would have to use it to pay the remaining balance to ensure your creditors get paid their debt back. At the end of the day you get to keep your house as a result of this, which is usually the main point of doing the IVA in the first place. The only way you can avoid the extra year is to challenge the equity calculations or perhaps offer a lump sum settlement from 3rd party funds. Other than that I'm sure the next year will fly by.