www.iva.co.uk

Hi all

First time posting here.

I started my IVA through Payplan in August 2015 with a debt of £26529.01. My proposal had me paying back in total £33486.85 which includes fees and the equity release at end of 5 years of £7652.52.

However, because I have been promoted and got new better paid jobs my payments are much higher and I estimate that by August 2020 I will have paid over £35k to my IVA.

First question is can they keep taking money once I have paid the original agreement?

Second question is if I have paid this at end of 5th year can they still expect the equity release as well?

Thanks in advance

Welcome to the forum !

Your iva will end prior to the proposed end date if you have been able to pay 100% of your original debt, plus fees and potential statutory interest.

Equity release will only be taken if you have not reached this.

Your credit file will remain effected until the 6th anniversary of your start date to your iva, however would be amended to say iva completed and creditors would update their credit files to reflect payment made and cleared.

As Luluj says -- the IVA will cease if you hit that figure of repaying the full debt, plus fees aand statutory interest (which is excluded in some cases) earlier than the anticipated end date.

On a debt of around £27k, you would be looking at something like £6k in fees. Adding in statutory interest, you would be looking at an additional £8k or £9k over the 5 years (probably a bit less as it will, in reality, be calculated on the reducing balance). So the magic figure would be around £ 41,000 to see the arrangement end early due to full settlement of the debt.

The answer is explained in my short video here:

https://youtu.be/h4dozq9aGak

Thank you all so much for your replies. Much appreciated

So I'm about to enter my 6th year and although I still feel a bit bitter about the amount I pay into the IVA compared to what I read others on here pay and what the adverts suggest payments will be I'm just glad it's nearly over. I am just about to have the yearly review and no doubt my monthly payment will go up and I still live in hope that they will say you've paid enough now

Original debt £27k
Paid so far £35,900
Total I expect to pay £49,670

As I roughly worked out -- about £41k should see everything being paid, so the IVA might well end earlier. Maybe Payplan could advise.

I've tried that payplan were really helpful saying if I did pay it in full their accountant would let me know without telling me how much that would need to be

Today though interestingly I have had a letter from Link financial that brought one of my debts to say that no sum remains payable on the account. Does that mean Payolan will stop sending them dividends?

Thanks for all your help

Wed Jun 24, 2020 7:22 pmHelly78 wrote:

I've tried that payplan were really helpful saying if I did pay it in full their accountant would let me know without telling me how much that would need to be

Today though interestingly I have had a letter from Link financial that brought one of my debts to say that no sum remains payable on the account. Does that mean Payolan will stop sending them dividends?

Thanks for all your help

Link could well have written the debt off, so their dividends will be distributed between the other creditors. Creditors handle defaulted accounts in a myriad of weird and wonderful ways-- sometimes simply freezing the actual account and diverting the dividends to a 'slush fund', so account balances cannot be relied upon. So, the debt may not be formally written off, but just suspended, as it were.

Thanks Foggy for always replying, I very much appreciate it.
I tried contacting Payplan again to ask how much I had left to pay as all accounts are now showing as closed on my credit files. They said the working out is very complicated and they would only do this if I wanted to make a full and final payment. I said surely the accountants must know because they have said previously the accountants wouldn't take more than the full amount including interest and fees. Its been 4 weeks now and they have stopped corresponding with me.

38k paid now so I plan to bug them with a monthly email asking if I've paid in full. Not sure what else to do.

It feels good having clear closed accounts. Just really looking forward to being able to save, build credit score, pay into my pension, look to move house.

Fingers crossed for Oct/Nov when I will have paid around 41/42k

Roll on end of IVA

Thanks

No problem, Helly. I would wait until November and then request the outstanding balance again --- it might be a bit of work for them, but that is what they are being paid for ! If they still refuse complain to their regulatory body.

Would you believe it...back with my original contact, she has been off sick and she has asked the accountants for the final amount. I'm now waiting with baited breath for the response

£40,202.95 paid so far hopefully not much left!

Oooo-eerrr ..... fingers crossed !

Hope they come back to you soon.

Not good to keep you waiting this long.

So I've had an answer today with my final amount on, plus the date that was calculated on so as I've already made another payment looks like I have about 2.3 payments to go! Should be done by December so I'll be starting 2021 with a clean slate