www.iva.co.uk

Good morning and hello!

So... I was one of the silly ones and got myself wrapped up with payday lenders.

However, this was while I was young and daft, and now I am 4 years into a 77 month IVA.

I have recently gone to town with complaints on the payday lenders and have had 6 of the 10 accounts closed completely, which I have informed the IVA supervisor about (DFD) and they are currently going through the process of removing them. Some of them include those who didn't stake a claim at the beginning of the IVA.

I understand that all creditors will be included in the IVA as the annual statement shows. I also know that they will not be receiving payment until they make their claim which can be during the IVA or at the point of completion. This means the funds are being held by DFD to distribute when the time comes.

My question is this. If the funds are being held for one of the companies who have confirmed account closure, will the funds being held for them be immediately distributed to my other creditors, reducing the overall amount owed? I have asked DFD, but they haven't yet responded I just wondered if there's anyone with similar experience.

Many thanks

If a creditor does not claim or their claim is invalid the funds are divided among the other creditors. If these have been paid in full the money goes back to you.

That's great, thank you. If the funds are then dispersed to the creditors now for example (with 27 months left to go), and it reduces the debt by the equivalent of 6 months of payments, when will they adjust the terms of the IVA to show it will end in 22 months?

Example:

Monthly payment = £375
Months left = 27 (meaning £10125 expected)
Total amount of debt 'written off' = £2250

Will this then reduce the IVA to 21 months remaining?

Sorry for the quesitons, I just want to understand in my mind how the process will work

No -- extra dividends will not reduce the term -- you pay the regualr payments until either:

You agree a full and final offer. Or,
You make all the agreed payments. Or,
Your payments into the arrangement equal the full original debt, plus fees and possible statutory interest.

The object is to pay back as much of the debt as possible, not, as some advertising would suggest, to write off as much debt as possible.

If you had been repaying in full the term would have shortened but if not the creditors just get a higher percentage.

Excellent thank you very much for that