I have been paying an IVA and am on last year (6th year due to being home owner) but cannot release mortgage money. Total of 6 years paying back £12,800 debt. My IVA provider is Freeman Jones who say I have to pay back £17,299 which includes fees and charges. My final payment should have been 2/1/2020, but Freeman Jones are saying that I have to pay 100 pence to the pound due to my earnings now and are telling me I still owe £919 which I must pay to clear IVA. Is this a normal course of action or are Freeman Jones charging too much. Can they legally continue after the 6 years (which included a 12 month extension)
The fees will be those agreed by creditors at the outset -- on a £12,800 debt I would expect them to be in the region of (assuming 100p dividend) £5k, ( Nominees fees i.r.o £1750, Supervisors fees i.r.o £2000 plus disbursements) so their figures look correct.
If your income increased in the last year and this has resulted in a shortfall on expected payments, then they can ask for the resulting 'arrears' .... extending the IVA to cover this outstanding amount is an attempt to be helpful, as many of those in an IVA cannot come up with a lump sum just like that.
They appear to be acting correctly.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
