4-further payments to make the minimum payment

[corry.l]

I am 4.5 years into my IVA, and can see the light.. (so I thought). My IVA Practitioner has now said that I will have to make 4-further payments to make the minimum payment. This is despite me actually paying more each month now than was originally agreed, their reasoning 'it was not worked out correctly at the start'. Is this excuse valid or am I to assume they have made a mistake with their own charges???

[aguise]

Hi Corry and welcome.
Have a look at your fees on the proposal were they set or were they on a time cost basis. The latter could be the reason.
Wait for other answers though I am in an iva like you. Well done though for getting nearly to the end.

Ang

Please visit my blog at http://aguise.blogs.iva.co.uk/

[MelanieGiles]

Hi Corry and welcome to the forum

If you guaranteed to make a specific dividend payment to creditors, and their claims have come in higher than had been originally anticipated, this could cause the need for additional payments. But you should ask your IP for the reasons why these are necessary, as this could also relate to higher fees as Ang has already mentioned.

Whilst this may be disappointing for you, after five years of payments, and extra four months is hardly a problem if this means that the balance of youe debts will be written off.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[iva experts]

Welcome to the Forum Corry,

Congratulations for making to 4.5 years, thats great [:D]

Just to echo the great advice given above, take another look at your proposal as the fees may be set on a time cost basis. However either way I believe that you should contact your I.P and ask for the specific reasons why an extra 4 payments need to be made.

Best Regards,
IVA Experts
http://www.iva-experts.co.uk/

[corry.l]

Their charges are a set fee for the 5yr term (paid from years 1 and 2 of the agreement). I find it hard to believe that the totals were incorrect since at the moment I am paying £900 per month which equates to £3600 extra payments due (recent statement showed their fee to be just over £3000) which they have still not explained - this topped off with me now moving onto my 6th IA over the term, I am sure there is an error somewhere (or maybe hoping). Still waiting to hear back from them. The light is still there, just not as bright any more....

[caraf]

what iva company are you with

[Skipper]

Just to chime in,someone may have incorrectly worked out how much you owned from day one(less than the amount).As you fees are fixed rather than time baed this shouldn't be a factor. These days most IVA are fixed fee based as in mine.

I can sympatheise with you as you have made the sacrifice in making 60 months of payments

<<My motto:I am proud of black culture and is against racist bigotry>

[MelanieGiles]

Sounds to me as if your creditor claims have therefore increased.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[corry.l]

I don't want to announce which company I am with until my facts are 100% correct, since they have been fairly hassle free and good to me. The agreement was set at ensuring a raturn of a set percentage of the total debt, which was thencalculated over the 5-years, but like I say I am paying £80 over my minimum payment each month and have always paid every payment. I will now go to all my correpondence and check everything out before contacting my IA. Thanks for the input on here, I will report back soon....

[MelanieGiles]

If the fees are fixed, then there was either a mistake at the beginning in calculating the dividend, or your creditor claims have increased. If the IP made a mistake, they should be telling creditors this and not expecting you to make more payments, but if you feel that it is better to let sleeping dogs lie you will have to pay over the increased sums.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[clasher]

If creditors have been imformed of the date of a meeting , i would have thought that they would have their total of claims submitted so that all concerned would know the total amount of debt , so that it would be included in the chairmans report so that no doubts regarding the amount of debt could occur.
If they are not obliged to submit their claim by the date of the meeting and allowed further time to submit claims and do not submit by this new timescale, are their claims void and if so what happens to the money they were due.
Is it correct to say that creditors claims can in no way increase from the day of the meeting . Thanks

[MelanieGiles]

Not all IPs independently verify creditor balances prior to wiritng the proposals unfortunately. We do here in my practice, but others rely upon information provided by the debtor which can often be unreliable. Not suggesting this has happened in this case, but maybe is an explanation for the difference.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[corry.l]

Having looked further into this matter my 3yr statement said that on information provided and to hand settlement of 49p in the pound will be made, BUT year 4 statement has listed this to be 45.5p in the pound. In my mind there had been no change at all in the debt itself and as such the IA is going to look into this further. Total agreed for settlement however is 53p, so there has been poor estimation right from the very begining. This is really poor since even between yr3 and yr4 I have overpaid by £80 per month compared to the original agreement!!! But hey...... Still light, this time next year my 3-kids will have the Christmas they have wanted for the past 5-years, and the best one ever!!!

[MelanieGiles]

Sorry, I really don't understand these numbers. If you guaranteed to make a specific dividend payment, why do the numbers keep changing?

And please keep up your positive attitude and look forward to no more IVA payments, and the first couple of months of that money being all yours!

I think sometimes that people like me lose sight of the huge relief you must feel to not being tied to us for any longer!!!

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp