When we started the IVA in 2010 it was worked out we would be paying 52p in the pound. We asked for an update (as we have received PPI that is half of the debt) and now they are quoting 100p in the pound. Why would this be?
the PPI repayment has significantly increased the dividend to creditors and therefore, with your scheduled repayments you will be paying back the whole debt
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Agree with Andy the completion certificates need to be issued with a clause on re PPI to enable people to continue with their life debt free as we first set out to be in 60 months.
Paul raises a good point as there have been a couple on the forum if they'd claimed PPI could have been debt free without the insolvency route.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
We always review the potential for PPI claims before recommending an IVA in my practice plasticdaft, the problem is it can take up to six months to determine whether a claim is going to be upheld, in which time our clients do need immediate debt relief.
I would imagine repaying creditors the money that you borrowed from them would surely give you some sort of reward on a personal level?
Whether creditors have behaved correctly or not is difficult to know in each individual case, but regardless they have agreed to write off money that has been lent by them. If they are able to recoup more money at no personal cost to you, whilst monthly repayments stay at an affordable level, I'm not quite sure as to why that would be an issue?
Johnd9986 - i also ended up being able to pay 100p in the pound which was slightly more than expected but for me the biggest plus point to that was i will not have to go through the dreaded equity release / additional year extension - the other plus is hopefully by paying 100p there should be no unnecessary delays with the completion. Well done!!
IVA started Jan 2012
Last payment made June 2014 @100p
Completion certificate received Sept 2014
Totally agree with you MJS, I don't understand why someone would resent paying a higher dividend. Afterall, you've borrowed the money, surely there's a moral obligation to repay what you can?
I am with MJS and ClareSilver on this. We borrowed the money, presumably, with the intention of paying it back. Circumstances dictated otherwise and we entered into IVA's. Until my personal crisis put the mockers on things I was actually enjoying "beating my dividend". In the end I finished early, but had already repaid the anticipated (agreed) dividend, so all parties still got what they signed up for.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Obviously I intended to pay back the full amount and did my best to do this, however circumstances changed and I was forced down this route. I now have a new agreement and I intend to fulfill every obligation but I will do so in a way that is most beneficial to me. It is a business arrangement and you can rest assured the creditors see it this way and will do anything they can to benefit themselves.
