www.iva.co.uk

Ihave an IVA with creditfix, i have had it for 5 years, my original debt was £46,000 ihave paid £7000 but am now in a position to pay off the whole debt but they want over £52000 lus the£7000 ihave already paid are they allowed todo this

Was your IVA just for 5 years or did you have an equity release clause? If it was just for five years I imagine you would close to making your final payment now.

Did you ask for a settlement, which means you pay all of your debts plus fees, or did you offer a full and final which means you pay significantly less.

First question : How are you now in a position to pay off the IVA ? This will affect your 'bargaining power'.

Second question: What do you mean by "pay off the whole debt" ? Offer a full and final based on remaining payments, or settlement of the original debt and fees ?

To settle the original debt and fees you would be looking at around £55k, less the £7k already paid, so a payment of around £48k. This could be higher as you are with one of the more expensive firms like Creditfix.
For a full and final you would be looking at offering the remaining regular payments, plus 12 if you are a homeowner.

Sat Mar 20, 2021 11:35 amkallis3 wrote:

Was your IVA just for 5 years or did you have an equity release clause? If it was just for five years I imagine you would close to making your final payment now.

Did you ask for a settlement, which means you pay all of your debts plus fees, or did you offer a full and final which means you pay significantly less.

My IVA was for 5yrs but they increased it to 7 without telling me .I asked for a settlement figure and i was told i had to pay £52,494 on top of that is the £7000 i have already paid which is total of£59,494 my original debt was £46,854. i am now in a position to pay off the whole debt having receive an inheritance.I just think their charges are a tad extortionate

CF fees are always high and I'm afraid you will have to put up with them. If you have enough to pay it all off then do so, otherwise CF will take it anyway as a windfall. Did they tell you why they increased it?

As Kallis says, an inheritance is payable into the IVA anyway. To be fair, you would be paying the same amount whatever the term of the IVA, although I am curious as to why they might have increased from 5 to 7 years -- not something that usually happens. However, a moot point now.