I have been on an IVA for over two years now.

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Richard.os

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Post by Richard.os » Wed Jul 28, 2010 12:14 pm
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.
 
 

Adam Davies

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Post by Adam Davies » Wed Jul 28, 2010 1:17 pm
Hi
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.
Regards
Andam Davies
 
 

MelanieGiles

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Post by MelanieGiles » Wed Jul 28, 2010 11:37 pm
These days most IP fees are cleared within the first six months, and then distributions to creditors should be made at least quarterly.

Situations like this still continue to give IVAs a bad name in the eyes of creditors, and personally I wish that IP firms could be a bit more focussed on getting money paid out.
Regards, Melanie Giles, Insolvency Practitioner
 
 

MelanieGiles

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Post by MelanieGiles » Wed Jul 28, 2010 11:38 pm
These days most IP fees are cleared within the first six months, and then distributions to creditors should be made at least quarterly.

Situations like this still continue to give IVAs a bad name in the eyes of creditors, and personally I wish that IP firms could be a bit more focussed on getting money paid out.
Regards, Melanie Giles, Insolvency Practitioner
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