www.iva.co.uk

Hi all,
Just a few thoughts I'd like to share and question I'd like to ask.

I've read on a few forums, that when a debtor has reviewed their credit file they've noticed that their debt is much bigger than envisaged - perhaps through numerous charges being applied, a genuine error or perhaps the debt has been sold to some other party.

So, when a creditor gets wind that you're insolvent and going for an IVA or bankruptcy, can they legally apply numerous charges to inflate the debt? ('smash and grab' type behaviour).

Best

OW

- 'I wont cry for yesterday 'cause there's an ordinary world somehow I have to find...'

Hi
I think that the creditors that you have personal loans with do state the whole amount due,including interest to the end of the agreement,when lodging their claim during an IVA,this has been an eye opener for many on this forum,however credit card companies just lodge the actual amount that you owe plus any costs[legal fees etc].
I suppose that a creditor is entitled to add on costs to cover administration but how they arrive at these fees is anyones guess.
regards

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

Many thanks Andy, very useful to know.

I've noticed that for personal loans they want the full figure and not settlement balances.

I'll keep my eye out for their 'admin' charges![:)]

Best

OW

- 'I wont cry for yesterday 'cause there's an ordinary world somehow I have to find...'

Creditors will charge exactly what they are entitled to under the terms of their contract with you. Some calculate all future interest for the full term of the loan, but others do not. Dig out copies of your loan agreements and read the small print relating to insolvency to be sure.

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

Many thanks Melanie, will check the original agreements.

Beyond the interest for the projected period of the loan are there any other charges they could apply?

Best

OW

- 'I wont cry for yesterday 'cause there's an ordinary world somehow I have to find...'

They may charge late payment fees - but as we all know they are now only allowed to charge fees in line with their actual costs. If they have instructed solicitors to collect the debts for them, then these can also be added to the balance due.

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