Confused with settlement figures

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janie562

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Post by janie562 » Thu Sep 10, 2020 12:38 pm
Hi i took out a joint IVA with my husband. The initial debt between is was 14.000 we have been paying the IVA for 3 yrs and the case manager said we have paid 4600.off. i recently received 7000.00 inheritance money so i asked them how much a settlement figure would be which they replied 6590.00. Which my heritance would cover. They money has to go in to my IVA now they say its 21.000 to settle the Iva. I dont understand
Thank you Janie

Foggy

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Post by Foggy » Thu Sep 10, 2020 1:47 pm
To settle an IVA early you need to pay the original debt, plus fees and possible statutory interest.

On a debt of £14k over the three years, this would be in the region of £21k --- but take off the £4.6 already paid, leaves around £16.4k ... which makes their £21k a little high ( unless you are with one of the few who charge higher fees. )
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

janie562

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Post by janie562 » Thu Sep 10, 2020 2:35 pm
Im with Credit Fix. Do they charge higher fees?
Thank you
Janie

janie562

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Post by janie562 » Thu Sep 10, 2020 2:38 pm
Ive just paid them 7000.00 from my inheritance. Will this come off my 21.000 debt making it 14.000 or do they take fees out of it for my IVA
Thank you
Janie

Foggy

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Post by Foggy » Thu Sep 10, 2020 2:44 pm
Yes, CF do tend to charge higher fees ! They will also take fees from the £7k you have just paid in. However, it will make no difference as your IVA will continue until the end, unless you hit that figure for settlement earlier --- this inheritance simply means your creditors will get more back in the long run.
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

janie562

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Post by janie562 » Thu Sep 10, 2020 4:14 pm
Thank you again for your quick reply.
I will be getting 25.000 when my parents house is sold it could be this year. Its an inheritance
They cant take all my money can they?
I will be paying off my IVA with the money.
Thanks
Janie

Foggy

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Post by Foggy » Thu Sep 10, 2020 4:32 pm
They will, most likely, take whatever amount takes you up to the settlement figure. If they are currently saying £21k and you have just paid in £7k, that would leave £14k less another years payments in the meantime, so they would be taking around £12k.
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

janie562

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Post by janie562 » Thu Sep 10, 2020 6:25 pm
Hi i really appreciate your professional advice. Thank you so much. You have made things alot clearer for me.
It was a shock how much the fees were put on my debt and i felt very angry.
You have explained it fully for me even though i still think its too extortionate and should have been explained properly in the beginning .
Thank you again
Janie
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