I have been on an IVA for over two years now. I'm with Money Debt and Credit and when I received my balance in April, the £6400 pounds that i've paid over the previous 2 years had nearly 60% wiped off it by the companies "charges". Although I have increased the level of contributions over last and this year (until March 2011) I fear that when it comes to the magic month 54 (September 2012 for me) i'll have paid well in excess of £18000 (with the settlement/debt figure) which was set at £15600 for me!! This will no doubt me re-mortgage etc to make the difference!!
Please advise if there is any (simpler) explaination to challenge this or shall I set aside some cash to deal with this.
Your Insolvency Practitioner will take his or her fee in the first couple of years and this is all agreed with your creditors.
An IVA is based on you paying as much as you can afford over the five years and it is not unusual to pay more than the anticipated amount. Remember you still owe your original debts, less the dividend paid out by your IP until the end of your IVA. Only then is any debt that has not been paid written off.