End in sight?

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Levi.k
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by Levi.k » Sat Aug 18, 2018 5:27 am
Hi. The light at the end of my IVA tunnel is hopefully getting brighter, however one more hurdle has presented itself. So far I have paid approx £11800 into my IVA debt of approx £7800. I have had about 5 different Case Officers during the past 5years and have not had an annual review for the past 3 years. I had a significant change in financial circumstances 2 years ago ( the birth of my son ). Due to my lack of knowledge of how IVA’s work, and the lack of regular contact with any single person at my IVA provider, I didn’t realise I needed to notify them. I also didn’t realise that I had to notify them of any increase in income, which happened on a monthly basis due to my income being largely commission based. However I understand now that it was written into the contract and my ignorance on the matter is no excuse. My ‘new’ case officer has conducted a final review having requested 5 years worth of income information and has determined I have earned enough during the term to have paid the “100% figure”, however as this has not been paid during the IVA term a further £1900 is due in order to complete the IVA. I do not have this amount of money to pay as a one-off payment however I am committed to getting this whole expensive journey over with so wondered if it would be protocol to allow for any monies due at the end of an IVA to be paid in instalments? The thought of paying £14k back on an £8k debt sickens me, however I was 23 and fresh out of the Military when I entered it. In hindsight I would have sought further advice!! Any info or advice will be gratefully received.
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Foggy
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by Foggy » Sat Aug 18, 2018 8:07 am
To be fair, and depending on the make up of your debt, £14k to clear £8k isn't that bad a deal. If you had paid it in the "normal" way (minimum payments and all) you could have paid the debt amount again in interest only and still be left with the principal sum !

Amyway .... Most IP's would allow you to address arrears by extending the IVA by a suitable number of months. so worth asking. They might baulk at the suggestion, citing your non-compliance as the reason (which, to a degree, as you recognise, carries some weight). However, they are complicit in this failing in not having carried out their statutory duties which would have caught this at the start. So, shouldering some of the blame, they should assist in the resolution.
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Levi.k
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by Levi.k » Sat Aug 18, 2018 9:43 am
Thanks for the advice Foggy. The reason it sickens me is that, had I been more aware of my contractual duties, my IVA would have probably ended many months ago. I am in Sales and so was my payments were based on my relatively low basic salary - even at that I would have paid back more than my debt level. However by it running the full time I have probably cost myself 2 years worth of statutory interest, so Payplan and the creditors have been the winners on this one. Anyway, I will speak to them on Tuesday when the fateful phonecall is due. I have looked at my Credit Report and the combined balances listed are less than the £1900 quoted to end the IVA, however I understand this will likely include statutory interest. I have only ever received one report in the 5 years of the IVA relating to how my payments have been disbursed, and my recent request for it in anticipation of Tuesday’s phonecall has been ignored.

Levi.k wrote:
Hi. The light at the end of my IVA tunnel is hopefully getting brighter, however one more hurdle has presented itself. So far I have paid approx £11800 into my IVA debt of approx £7800. I have had about 5 different Case Officers during the past 5years and have not had an annual review for the past 3 years. I had a significant change in financial circumstances 2 years ago ( the birth of my son ). Due to my lack of knowledge of how IVA’s work, and the lack of regular contact with any single person at my IVA provider, I didn’t realise I needed to notify them. I also didn’t realise that I had to notify them of any increase in income, which happened on a monthly basis due to my income being largely commission based. However I understand now that it was written into the contract and my ignorance on the matter is no excuse. My ‘new’ case officer has conducted a final review having requested 5 years worth of income information and has determined I have earned enough during the term to have paid the “100% figure”, however as this has not been paid during the IVA term a further £1900 is due in order to complete the IVA. I do not have this amount of money to pay as a one-off payment however I am committed to getting this whole expensive journey over with so wondered if it would be protocol to allow for any monies due at the end of an IVA to be paid in instalments? The thought of paying £14k back on an £8k debt sickens me, however I was 23 and fresh out of the Military when I entered it. In hindsight I would have sought further advice!! Any info or advice will be gratefully received.
Levi.k wrote:
Hi. The light at the end of my IVA tunnel is hopefully getting brighter, however one more hurdle has presented itself. So far I have paid approx £11800 into my IVA debt of approx £7800. I have had about 5 different Case Officers during the past 5years and have not had an annual review for the past 3 years. I had a significant change in financial circumstances 2 years ago ( the birth of my son ). Due to my lack of knowledge of how IVA’s work, and the lack of regular contact with any single person at my IVA provider, I didn’t realise I needed to notify them. I also didn’t realise that I had to notify them of any increase in income, which happened on a monthly basis due to my income being largely commission based. However I understand now that it was written into the contract and my ignorance on the matter is no excuse. My ‘new’ case officer has conducted a final review having requested 5 years worth of income information and has determined I have earned enough during the term to have paid the “100% figure”, however as this has not been paid during the IVA term a further £1900 is due in order to complete the IVA. I do not have this amount of money to pay as a one-off payment however I am committed to getting this whole expensive journey over with so wondered if it would be protocol to allow for any monies due at the end of an IVA to be paid in instalments? The thought of paying £14k back on an £8k debt sickens me, however I was 23 and fresh out of the Military when I entered it. In hindsight I would have sought further advice!! Any info or advice will be gratefully received.
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Foggy
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by Foggy » Sat Aug 18, 2018 10:42 am
Payplan do march to their own drum these days ! To be honest I am surprised that an IVA was offered for such a small debt -- bit of a sledgehammer to crack a nut ! But, of course, there might have been good reasons at the time.

Balances on credit reports, or even creditor statements, cannot be relied upon as creditors deal with defaulted accounts in many mysterious ways, often creating a dummy account for IVA dividends whilst the real account lays dormant.

Best of luck with the phone call.
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Levi.k
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by Levi.k » Sat Aug 18, 2018 10:56 am
I agree Foggy. Or atleast I do now having researched a little more. I do remember being offered a DMP but was given the whole ‘there are no guarantees’ and ‘they will probably keep contacting you’ etc, which is exactly what i was trying to get away from. Hindsight is a great thing but a b**ch aswell!
Thanks for your support.
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Lisa Thomas
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by Lisa Thomas » Mon Aug 20, 2018 8:34 am
You could put forward a variation to ask creditors if they would waive their right to statutory interest (assuming it has not already been waived as part of your IVA T&Cs) but your IP might charge a variation fee of c£500 so creditors may not look favourably to this.

I think you should stress that you have not had a review or request for I&E info in all these years and complain and ask for a written explanation from your IP...
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