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I am currently just starting my IVA with my first payment being made on the 9th July. One of my creditors is HSBC (main creditor). If I was to claim my bank charges from them.. quite a lot.. I know they will take that money which is fair enough but will they take it off the amount agreed in the IVA or take it off the original amount owed?

Life is far too stressful!!

Maizie

They will deduct this from their current claim against you most likely.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

So they will deduct this from the amount in the IVA so could possibly reduce the term by a few months? Is this correct or have I misinterpreted this wrong?

Life is far too stressful!!

I believe that either they will pay out and the money will be spread amongst your creditors as a windfall or they will deduct it from the original amount you owe them.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
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It just means that their claim in the IVA will be lower. This will only reduce the term of your IVA if you are paying 100p in the £, which I suspect you may not be.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

They would take the amount due back to you against debt and you would still have to pay the same contribution to the IVA.

Basically the dividend to creditors will be higher than proposed.

Something to watch out for and best to do before going into an IVA or to wait until the IVA finishes but you have to watch out for the 6 year limit for debts!