2 Years to go

[elmintrude]

Hi All,

I was hoping one of you would be kind enough to answer a few questions I have about my existing IVA?

I set the IVA 3 years ago when I was just doing a temping job and was earning about £800 pm so my repayments were set at £250pm for around £25k of debt. I was happy as larry with this and it made things a lot easier, from then until now I had to postpone 3 payments and since then I've read that if you miss 3 payments it can mess everything up. I spoke to my IP and asked them if I could miss them and they said it was fine, I'm just a bit worried now that it'll cause trouble at the end?

Also, since setting the IVA up my income has increased quite a lot but IP have never asked any questions about this at all and I've only meantioned it to them in passing and they've just told me that the payments are going fine, to be honest I think I've only spoken to them about 6 times since setting it up. Will this cause me any problems when they the IVA ends? Do my creditors look into my bank details and if so can they claim any more off me retrospectively?

Finally, I'm at the point where I should be able to save up enough cash to pay it off early but I was told by my IP that the only way I can pay it off is with a gift or if I win some money. Right at the start of the IVA they also told me that I shouldn't amass any savings throughout the IVA. Is this the case?

In summary, my questions are:

1. Will the postponing of the 3 payments cause me any problems?
2. Should I be paying more due to salary increases? (maininly through comission as I'm in sales)
3. Can I pay an IVA off early with money that I've saved up?

I'd be very greatful if you can give me any answers as I'm really looking forward to being debt free for the first time in about 12 years and I don't want any nasty surprises.

[elmintrude]

I've just been reading some other posts and I've seen that the company I'm with are mentioned on the forum and not in a favourable light. They're apparently really strict on what you can afford to pay but they've never even spoken to me about my payments. I'm confused and slightly worried, the only thing I can think of is that because my IVA was set up over 3 years ago I have different terms and conditions, could that be the case?!?

[louisa.s]

hi and welcome to the forum.

I'm sure one of the experts will be along shortly to advise but from what I understand of it:

1. If you are in a position to repay those 3 missed payments then you should and your IVA will then be no longer in jeopardy and it won't get tagged on to the end.
2. Your initial contribution is genrally based on your fixed salary and I would check your agreement to see if there is a cluase about overtime/bonus/commission as a genral rule you pay in 50% of any addition income to your IVA but check your agreement you might not have that cluase
3. If you have managed to save up (and savings are allowed in your IVA - within reason) enough to repay your IVA & fees then I see no reason why they should not accept it but suggest you speak with your IP about settling early.

Hope that is of some assistance but as I said I'm sure one the experts will be along shortly to give you their advice!

[elmintrude]

Thanks louisa.s, it sounds like I might have nothing to worry about. They already said that the 3 payments will get tagged on the end but I don't really mind that. I'm sure that I've not got a comission clause in there as I was in sales when I set it up and it was never mentioned (I lost the IVA papers in a fire and shall ask my IP for a copy to double check).

Thanks for taking the time to answer, it's appreciated.

[ianmillington]

It depends upon the terms of the default clause. If the Supervisor has told you that it's OK to tag it on to the end then you can rely on that I think.

Once you get to the end of the IVA and you get a completion certificate then you are released from your obligations. The creditors don't have the right to crawl over your bank accounts.

I have my doubts as to whether the Supervisors obligations to review your income and expenditure are being properly fulfilled. Also, as a firm believer in wearing a belt and braces I would if I were you question what obligations (if any) you have to voluntarily disclose increases in income. I can give my favourite response - "It depends what the proposal says"!

Finally you are right in saying that IVA proposals have changed dramatically over the last 3 years. If it were possible I would bet money against your proposal being accepted if it were to be re-presented today.

Ian

[elmintrude]

That's great, thanks for the info and advice, I'll get in touch with them and get my proposal sent over to me again to set my mind at rest.

Thanks again.