I received an inheritance and used this to pay my IVA off in full. This was just 13 months after taking it out. I paid enough to pay back everything I owed to all creditors. I also paid all the fees via the insolvency company. This was on 30th April 2021. My creditors have not been paid any money at all to date, in fact some were not paid at all the last two months. I've tried getting an answer from the IVA company but they sent me an email address to direct my query but it's blocked and my email bounced back. I sent another email to their customer service dept over a week ago but no response. They have said it will take 6 months to get my completion certificate. Do they have a right to hold my payment to accrue the interest or should they have paid my creditors? I'd be grateful for any advice as it is annoying to think that possibly on top of the fees they are also getting the interest.
They do have the right to hold the funds until formal completion has taken place. As they have said, this can take up to 6 months, but some manage it faster. As for them gaining interest it is very unlikely that the funds are in an interest bearing account, and, if they were the interest earned would be eaten up by the fees accrued in dealing with it with interest rates being as they are !
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I can assure you that this will be as frustrating for the company in question as it is for you.
I imagine the hold up is nothing more than waiting for all creditors to submit final claims so that the money can be distributed fairly. Some creditors vote on every proposal, some on some and others never vote. If they vote, they have to submit a Proof of Debt (POD) form, so those debts will not be an issue. Check your Chairman's report to see who voted.
Six months has always seemed excessive to me to allow creditor claims in circumstances like these, but I don't make the rules. If I did, it would be 4 weeks tops, and if you don't submit a claim or POD then you don't get paid. That would concentrate a few minds, and I imagine at least 2 I.P's who used to post on here extensively, possibly 3 if I think about it, would agree with me.
Kindest regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
I think 4 weeks at closure to submit a claim or POD is generous. I have always felt that this should be 'set in stone' within 6 months of the start of the arrangement. Then closure is dependent on only confirming the consumers compliance over the term, which, if annual reviews are thorough, could be completed within a few weeks.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I agree that 4 weeks is generous, but there are some creditors that may not be either used to IVA's or who are notoriously slow at everything, I am thinking local authorities, DWP, HMR etc so you do have to have a bit of leeway.
As I say, if it were up to me then things would be different.
Kindest regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
Did you understand the IVA before you went into it, if you knew about some monies coming your way or did not understand the process then you should look at were you mis
These are legal solicitors now looking at cases like yours
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