www.iva.co.uk

Hello, i am looking for some advise on my IVA.

I started to earn a lot more money 6mnths after i started my IVA, so the 50% clause comes into effect and i have been paying a little extra a month to cover this(totalling £2.5k) but after my last monthly IVA payment [:D], i was told i still owe over £7,500 [:0].

The issue i have, is my original debt was £21k and we agreed to pay (inc fees) £17.5k through the IVA so this means i will have paid nearly £27.5k back.

So i'm looking for an answer on the following:

1) Should i have gone through an IVA or debt management
2) Should the extra money paid & outstanding be declared to my creditors (as its not mentioned in any annual report and the IP gave 3 different responses when i asked why) the latest being they do not have to by law?
3) Why is there no "golden rule" to make sure we dont pay more than the original debt or a set amount i.e debt plus interest?

I have tried for independant advise from FSA and other IVA companies but no one seems to be able to help.

Kind Regards

Craig

Hi and welcome.

Sorry that you seem to be having problems with your IVA.

You will always owe 100% of the debt plus fees and statutory interest. If you can pay off in full before the five years is up then your IVA will conclude sooner.

You should have been given advice as to all of the options available to you when you initially enquired about your debt problems. The choice of which path to take is always yours.

The extra money will have been paid to your creditors - it makes a difference to the dividend they get.

As previously stated - you will never pay more than the original debt plus fees and interest.

Which company are you with?

Craig the IVA was set up at a time when you werent earning as much,clearly on the wage you get now you could probably have maintained payments to creditors without using an IVA but that wasnt the case.

As Jan says the most you can be asked to pay back is 100% of your debts plus fees plus statutory interest(8% I think),so if you continue to overpay you will most likely conclude you IVA early.

Hope that makes sense.

Paul

Thank you for your quick response, i've not had any problems as such, it's just a little shock after 5yrs of payments to find you still owe a huge sum. I was just looking for clarity as it felt like "smoke & mirrors" by them not declaring the extra money on the annual report.

Wish i had held back, the promotion plus extra income would have ment i could have paid off the creditors as normall but they hound you daily and stick rediculious interest on top and at a time when your most vunerable but i suppose its what you get if you dont manage your finiances!!

Oh well, another year without a holiday!!

Good luck to everyone else

All the best

Craig

One thing i forgot to mention is the dividend has never changed from £0.47p and i just also noticed my monthly direct debit has stopped? Do i need to make further arrangements to pay this extra money?

Sorry to be a pain!

You should check with your own ip over your direct debit. Good luck with nearing the end of the iva.

Paul

Some good news, they will consider any major purchases from when i moved into my rented house i.e fridge, cooker etc and try and reduce the amount!

Havent checked the DD with them yet, i'll ring them now.

Thanks for the help, brilliant website!

Hope you get it sorted - let us know.

Just an update, the DD is only active for the 60mnths, any further payments for the extra money has to be set up seperately.

I also checked that whilst this money is owed, are the IVA conditions still active i.e 50% rule, which they replied NO as the IVA contract is set for 60mnths only! and so all my earnings after the 60mnth payments are mine