www.iva.co.uk

I entered an IVA as I had unsecured debts of £15,366. I paid £204 per month until I was in a position to ask for this debt to be cleared in its entirety.

At this point I had paid £12,036 in voluntary contributions but was told to clear this debt I would have to pay an additional £13,136.57 to discharge all obgligations under the terms of my IVA. Do you think this amount was excessive as I did but when I questioned it was told if I didn't pay it then I wouldn't be discharged?
Many thanks

Hey there and welcome to the forum. Could you just confirm what the ORIGINAL amount of debt was? The most you would ever pay to settle is the original debt plus fees plus interest. Please hang on for an expert. Viki X

The original figure declared to the court was £15,366.00.
Trust this clarifies

You need to ask your Supervisor for a statement showing what is required to pay your IVA in full.

It may be that one or two of your creditors claims ma have increased compared to the original proposal for whatever reason and you need to take into account the costs of the IVA including the Nominees and Supervisors fees. But once you have the statement from your Supervisor I am sure all will become clear.

The statement reads as follows:

Receipts
Settlement of equity in property 13,136.57
Voluntary Contributions 12,036.00
Bank Interest ____65.94
25,238.51

Payments
Nominees fee & disbursements 2,330.00
Supervisor's remuneration 2,193.25
Legal fees 1,080.00
Specific penalty bond 120.00
Registration fee 35.00
Payment in full to creditors 18,482.53
VAT on disbursements 997.73

I guess the Nominees and Supervisors are correct per the proposal?

It looks like creditors have increased slightly, this may be because a claim or two has come in higher and/or statutory interest was also paid to creditors on top of their claims.

Without seeing all the documentation, it does look about right and you have now managed to pay all your creditors in full.

I just find it strange that when we went to my creditors with the initial figures they agreed to them and even declared them in writing. I was also told when I came to settle up that had I offered the equity from the sale of my first home which was £4,000 the figure wouldn't have been as much.

The figures in YOUR proposal are NOT agreed figures, so for example if you used a credit card statement that was a month old for the balance and you used the credit card following that statement, your proposal would be wrong by the amount that you had spent plus any interest and charges up to your IVA being approved.

You are entitled to see copies of the claims from your Supervisor supporting each creditors claims if this will help you.

Then I was totally misled when I entered the agreement as I was told all interest would be frozen, the amounts would be agreed with the client before going to court for agreement and I would have to pay the outstanding debts plus costs to the supervisor of not more than £3,000. Upon completion of this I would have a clean credit rating and would have to wait another year before I could apply to have the IVA removed from my credit file.

subject to the terms of your IVA, it is common that if you can pay the debts in full plus statutory interest. However, I would ask your Supervisor for a breakdown of your creditors claims and ask why the claims have increased.

Credit file, your IVA and defaults on your creditors will be altermatically removed 6 years from when your IVA was approved.