www.iva.co.uk

Hi,

i finally got a reply about a settlemnt of my iva, my original debt was around £20,000, under the iva if i let it run i am paying back round about £12.000, according to them they want a settlement figure of £23,417.17???? and i have to offer as near to that as possible? this includes an early settlement penalty of at leat £2,000,
Is this correct that is what i must pay back?? as if thats the case i might as well just struggle on an pay the monthly payments as i will end up paying more back than i originally owed[?]

Have they provided you with a calculation of how they have calculated that figure. It may be that creditor claims have increased since your IVA was accepted, and that you have to fund a minimum dividend level. And what do they mean by an early settlement penalty?

this is what they sent


total funds paid to date : £1,500
bank interest 31p

fees paid

nominees fee £788.94
Supervisors fee £ 85.95
office holder expenses £275.09
VAT £196.18

Balance held £154.15


Actual claims to date £17,690.00
Provision for further claims £2,843.82
Outstanding fees and disbursments £100.00
Meeting fee £500.00
Early settlement fee £2,000
Vat £437.50


Full and final amount £23,417.17

i can make no sense of all of this any help would be appreciated

You should definately query that early settlement fee - I suspect that they mean supervisory fees but it does not cost any more to close a case in year 2 than it does in year 5!

And they seem to be suggesting that you settle all creditor claims in full, rather than returning the dividend originally pledged - which is what the settlement figure ought to be based on.

Lots of questions still unanswered I am afraid, and I think you have to revert back to your IP on the above points.

Ok thanks for you advice, the company who are dealing with my iva is debt free direct and they are just not very helpful at all and insist that is what i have to pay if i wish to settle, which am not at all happy with as i am struggling to pay at present as they based the iva on my overtime, also they insisted at the time i was paying a shortfall in my council tax and i told them i wasnt, my original payments were 171 a mnth and went up to 191 due to the "shortfall", they have also now requested my pension details and i was led to believe this would not be touched as i make minimum contributions, its all getting very stressful as they just arent very helpful, thanks for you help its much appreciated[:)]

Try and correspond directly with your IP rather than staff members - but I accept that this might be difficult in the firm that you are using, where I believe that the IPs have little direct involvement with their clients. You could send an e-mail to them.

Hubby was with DFD. He was given a rediculous settlement figure when he first asked for one (call centre staff dont have a clue)
He emailed his IP direct. IP didnt reply but he was contacted by a really nice lady who did know what she was talking about and he got a more reasonable settlement figure.

http://www.insolvency-service.co.uk/newipsearch.htm

Click on that link and type in the name of your IP to get his/her email address.

Contact them directly and put your phone number on the email.
Hubby was called back in a matter of minutes.

Good luck xxx

I will get someone at DFD to look into this for you as this is ridiculous.

He is away unril 3rd November - will chase then

Thank-you so much for all your help all of you i realy freaked when i got the settlement figure!! have had enough stress to last me a lifetime and that didnt help, but you have all made me feel a bit better, Thank-you

A F&F should not be as expensive as indicated - someone has got the figures wrong.

well i did wonder why it was so high,as over the 5 years am paying back a lot less than that, think it worked out about 11,460 and my original bebt was bout £20,000ish so am not sure how they arrived at that figure

I think it's standard practice to send out the figure which would pay debts in full plus all ass. costs. Even after sending a figure to them it will still take ages and ages for any response. They seem to have a very long and drawn out process to even tell you if the figure sent is acceptable and will be put to creditors.
I can only advise emailing your ip and keep chasing.

I don't think it is standard practice. Sometimes offering between 10% and 15% less than what you still have to pay into your IVA might temp creditors to accept now. Also your IP should be able to suggest to creditors a variation to put this into effect and at a low cost. A lot of my colleagues (but not all) will do this at a fairly cheap rate which comes out of the pot.

I meant standard practice for dfd not all firms! Which just comes from my experience of them.