I have a couple of questions.
I have been paying an IVA for the past 3 years and I currently have about half left to pay (low thousands.) I recently spoke to the IVA company as I want to look into paying it off early and I asked them for a statement. There are a lot of fees from the IVA company that I'm not sure are correct? They make up nearly half of the whole debt. When I took out the IVA I thought there would be 1 nominee fee but there are 19 different charges. It seems that they have taken 3 years of my payments against this and haven't paid off any of my creditors, I just want to check this is something that happens?
My second question is if I were to pay off the IVA early with a gift from parents (only to pay it off) and I offered £1,000 less than the total amount outstanding, would this be accepted? Would they add on more fees? Thank you for your time
It is usual for some of the fees ( the nominees fee, around £1750) to be paid first.
A statement giving a settlement amount usually includes what is left of the original full debt, plus those fees and supervisors fees (typically 15 - 20%) and sometimes statutory interest. Added to the fees will also be various disbursements, some quite expensive.
What you need to be considering is a full and final offer, which is a lump sum based on the remaining IVA payments only.
Some firms are more concerned with their fees than anything else ! CreditFix will also add £300 variation meeting fee which they expect you to pay them in addition to the lump sum -- I hope you are not with them !!
Exactly how many payments do you have left and how much are your monthly payments ?
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
Thank you so much for your reply. Unfortunately I am with creditfix. When I originally took out the IVA I was so worried about debt collectors coming to my parents house I panicked and went with the first thing. Now regretting it. I'm shocked at the fees totalling over 3 grand. My original debt was just over 4 grand and I still have 3 grand left to pay after paying £85-110 per month for 3 years.
I have £110 x 27 months and £22 x 2 months left to pay. Should I be concerned that they haven't actually paid any of my creditors? I'm just fed up of it hanging over my head and would like to travel when it is possible so want to get rid.
Creditors are often not paid till half way through them it will be proportionate amounts to level of debt etc.
I would suggest an offer of £2500-£2750 might be acceptable to Creditors on a full and final figure. Be prepared to explain where the money is coming from and make it clear that should it not be accepted you will not have access to the money for other use.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !