I entered into an IVA 2 years (25 months) ago, for a period of 6 or 7 years, total debt of £6800, at a monthly payment of £70. I recently (4 months) had a PPI cheque go straight to them for £4764, so my total sum they have received is £1750 payments + £4764 = £6514. I have letters from my debtors who are under the iva to say one has had £0 payment in 25 months, the other has had £4 paid off in 25 months! I cant get them to give me a revised balance of what I owe (I have to wait for my annual statement, due this month) , they wont recalculate what I have saved in interest as the total iva was paid in 2 years, not 6/7 years, and I would like to have my monthly repayment sum reduced from £70 in light of my balance being so small now , maybe £300-500 ? the IVA practitioner is Hanover insolvency. Its the lack of payment to my debtors which worries me, I have paid 95% of my debt yet no one has been paid. What can I do? I was due to pay a further £70 on august 1st, today, but I cancelled it to try to get a dialogue with them to resolve my issues but I get 'fobbed off' and questions just explained away..
regards, Jamie Bradley
The problem with low debt and low repayment IVA's is that the majority of the money covers fees, and these are collected first, as agreed with the creditors themselves. The fee structure will be detailed in the Chairman's Report of the initial meeting.
Nominees fees are typically around £1500 - £2000 for setting up an IVA -- and this is the same for a £6k debt as for a £100k debt. This is sometimes limited by creditors to the first 6 months or 12 months payments. After this the supervisors fees are commonly around 15 - 20% of the payments. Also, of that PPI payment, typically, 30 - 40 % of a PPI refund goes to the claims company.
This all sounds pretty horrific, but, as I say, has been agreed by your creditors.
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
Why are IP's suggesting IVA's to people with low debt? I know it seems like the end of the world to the debtor and any way out is a lifeline, but are IP's doing this just for the fee's?
Don't cancel the payments Jamie, failing the IVA or being put in breach by your IP isn't going to resolve anything. Your creditors have received next to nothing in dividends by your statement so you will still owe them a good chunk of money plus interest backdated and going forward. Make a formal complaint to your IP, send it snail mail and recorded so you know he has it. Your creditors agreed to the low dividend at the proposal stage of the IVA being set up so they were fully aware of what they signed up for. You are angry because you feel guilty that they aren't being paid, but it really is out of your hands and not something that you really need to worry about. Phone your IVA company and make that missed payment, don't fail the IVA at this late stage.
Last Payment made 04/12/14. Completion Certificate 25/7/15. IVA company GT. No Issues
MerlinL14 wrote:Why are IP's suggesting IVA's to people with low debt? I know it seems like the end of the world to the debtor and any way out is a lifeline, but are IP's doing this just for the fee's?
We couldn't comment without knowing the debtor's circumstances. Ultimately it's up to the debtor to decide what option to take. I would never advise an IVA as being the best option if it wasn't. In any event IVAs take up a lot of time and effort to put in place and administer so if there isn't much in the way assets to cover costs then I can't see how this would be attractive anyway...