Clearing my IVA

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vicky171

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Post by vicky171 » Fri Aug 20, 2021 11:02 am
Hi, I am 26 months in to a 6 year IVA, due to being a home owner. I currently pay £539 a month. I have received some money and will be in a position to pay my IVA off (46 months x £539 a month- £24,794). Is this all I have to pay to settle or are other fees added on e.g. interest or admin fees. Would I be able to settle or do you think my creditors will increase what I owe due to the fact that I can pay more e.g. instead of paying the agreed 85p in the £ of my original debt will they now add on the additional 15p in the £ that was not included in the original IVA agreement? Thanks

Foggy

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Post by Foggy » Fri Aug 20, 2021 11:08 am
During an IVA you do not only 'owe' the agreed payments, but the full original debt, plus fees and sometimes statutory interest. It is only at the end that anything unpaid is written off.

What can be taken will depend on the source of this money you have come into, as it may well be due to the IVA, in its entirety, up to the 100% debt, fees and S.I total.

Where has this money come from ?
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

vicky171

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Post by vicky171 » Fri Aug 20, 2021 11:22 am
Hi, some shares that I owned have been sold, so I think it is classed as equity from assets owned (I was not able to release this equity until the sale of the company took place, otherwise I would have done so earlier), it is way more than I owe (I have been paying 85% of the original debt and have paid £13000 back so far). Would my IVA company be the ones to tell me how much more I might owe and what % interest might I be eligible for? Thanks

Foggy

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Post by Foggy » Fri Aug 20, 2021 11:45 am
Shares will be an asset and the proceeds of their sale will be due to the IVA. Your IP will be able to give you a settlement figure which will include the balance of the original debt and fees (typically 15 - 20% of realisations). Statutory interest, if payable, (it will say in your proposal whether it is or not) is charged at 8% p.a on the daily reducing balance and is simple interest, not compound. Creditors can be asked to forgive this interest element, if it is included, and often agree --- certainly worth an ask.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

vicky171

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Post by vicky171 » Fri Aug 20, 2021 12:04 pm
Thanks for that, sorry to be a bit dim but what are ‘realisations’ what would the 15-20% be calculated from? And is this to go to my creditors or my IVA company? Thanks

Foggy

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Post by Foggy » Fri Aug 20, 2021 12:37 pm
Fri Aug 20, 2021 12:04 pmvicky171 wrote:
Thanks for that, sorry to be a bit dim but what are ‘realisations’ what would the 15-20% be calculated from? And is this to go to my creditors or my IVA company? Thanks
Fees are often based on a percentage of money paid into the IVA (realisations) --- this will have been detailed in the initial proposal and expanded upon in the Chairman's Report of the initial creditors meeting. They are also divided into two parts: Nominees Fees -- typically around £1750 --- for the preparation of the IVA. The Supervisors fees, which are typically this 15 - 20% of monies paid in. Added to this are disbursements --- money paid out on your behalf, by the IP, typically around £500 - £1000. All of this goes to your IVA provider.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk
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