Figures don’t add up

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JSmith

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Post by JSmith » Sat Aug 01, 2020 6:10 am
I take out an IVA two years a go. My debt was £16,089.00 not including the supervisor fee and nominee fee.
Within the two years my wages have increase and expenses decrease which allows me to increase my payment from £102 to £700 a month. When I pay £14,336.00 into my IVA, I called and emailed to find out my balances and how much more I have to pay off.
THEY INFORMED ME THAT I HAVE £16,800.00 REMAINS TO PAY. My debt was £16,089.00, I have paid £14,336.00. OVERALL I WILL BE PAYING £31,136.00.

When I ask why do I have that remaining to pay when my debt was only £16,089.00 they said something about dividends and I will be paying my debtors more then the debts.

Foggy

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Post by Foggy » Sat Aug 01, 2020 8:57 am
You always owe the full amount of original debt, plus fees and possible statutory interest. Only at the end is anything unpaid written off. If you reach this figure earlier then the IVA will close earlier.

On a £16k debt these figures would be roughly £1750 Nominees fee and £2400 to £3680 supervisors fee. And we will say £500 disbursements. Plus 8% p.a statutory interest ( not simple to work out as it is on the reducing balance, so we will go for the maximum) £ 2560 for the two years so far. So The maximum I would expect you to be paying would be £24,460.

I would ask them for a written, detailed, breakdown of the settlement figure they quoted. They could be charging fees on a different basis and this will be laid down in the Chairman's Report of the initial meeting.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
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Radish

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Post by Radish » Sat Aug 01, 2020 9:11 am
Did should have been explained better at the start of the IVA, the operatives that we speak to initially should make it more clear that you are liable for interest and the full amount + fee's. I myself didn't know this and paid more than I expected. The IVA was the best thing I ever did, bringing me debt freedom that I would never have found if left to my own devices, having said that, I wouldn't sign up for another.
IVA complete March 2014 after 6 years.

Foggy

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Post by Foggy » Sat Aug 01, 2020 9:36 am
Sat Aug 01, 2020 9:11 amRadish wrote:
Did should have been explained better at the start of the IVA, the operatives that we speak to initially should make it more clear that you are liable for interest and the full amount + fee's. I myself didn't know this and paid more than I expected. The IVA was the best thing I ever did, bringing me debt freedom that I would never have found if left to my own devices, having said that, I wouldn't sign up for another.
Let us hope that we never need to, Radish !
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

luluj

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Post by luluj » Sat Aug 01, 2020 1:08 pm
Your disposable income has increased so you will be expected to pay your creditor's more of your original debt back during the term of your iva - only when you have paid 100p in the £ back plys fees and possible statutory interest will your iva conclude, if prior to the end of your iva term.
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kallis3

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Post by kallis3 » Sat Aug 01, 2020 5:54 pm
Something I never even thought of at the start of mine.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
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