Paying more than agreed?

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mary339
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by mary339 » Sat Dec 01, 2018 5:07 pm
My friend signed up to an IVA almost 5years ago, delivering 67p in the £ to creditors. She has now paid more in ‘voluntary contributions’ than stated in the agreed IVA but the debt company are trying to get her to release equity in the property for an amount which, when added to the voluntary contributions, total more than the original debt, so achieving more than 100p in the £. Can she make the company stick to an amount which achieves the 67p in the £? She is not trying to get out of paying what was agreed, she just doesn’t want to be ripped off by the company.
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Foggy
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by Foggy » Sat Dec 01, 2018 5:41 pm
During an IVA you are expected to make additional contributions, if available, up to the amount of the full original debt, plus fees and statutory interest. So, yes, until this amount is met the IVA will continue until the agreed term.
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kallis3
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by kallis3 » Sat Dec 01, 2018 10:16 pm
Agree with Foggy.
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Radish
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by Radish » Sun Dec 02, 2018 7:19 am
In my own IVA, when I was earning more, I was expected to pay more, when I was receiving less, and couldn't make the payments, they were capped onto the end of the IVA. It doesn't feel like its meant to work out in our favour for a lot of the time, however, whenever I do the maths, the same thing keeps coming to light, whatever I thought about the IVA, and sometimes not a lot, I would still have been in debt today without it. Even when it seems unfair - it got me to a place I never thought possible. Debt freedom, and I paid £25k back for 18.500 owed with windfalls received along the way (and had to pay over). I cursed and screamed all the way - but then I look at where I am today.. Very hard road but worth it when you get there.
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Foggy
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by Foggy » Sun Dec 02, 2018 10:51 am
Radish wrote:
In my own IVA, when I was earning more, I was expected to pay more, when I was receiving less, and couldn't make the payments, they were capped onto the end of the IVA. It doesn't feel like its meant to work out in our favour for a lot of the time, however, whenever I do the maths, the same thing keeps coming to light, whatever I thought about the IVA, and sometimes not a lot, I would still have been in debt today without it. Even when it seems unfair - it got me to a place I never thought possible. Debt freedom, and I paid £25k back for 18.500 owed with windfalls received along the way (and had to pay over). I cursed and screamed all the way - but then I look at where I am today.. Very hard road but worth it when you get there.


Very good point, Radish. We all hurt at the time, but lose sight of the fact that we would have been in a worse plight otherwise. When I went into my IVA I was at the stage of making minimum payments on everything each month. This barely covered the interest and, over the five year term of an IVA, I would have shovelled every spare penny into my debt and still have been worse off at the end !
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Radish
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by Radish » Sun Dec 02, 2018 12:23 pm
Thanks Foggy

I'm still scarred today, but in a good way. I think twice before I spend what I cant afford. If it had been easy I wouldn't have the same mindset :)
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abbiesmum2003
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by abbiesmum2003 » Sun Dec 02, 2018 3:18 pm
I do think alot if it boils down to your mindset and how you enter an IVA.
We entered owing nearly £50k. There was no way we would have managed without an IVA. All the way through we kept telling ourselves we owed the full £50k even though we wouldnt ever pay it all back.
We lost an inheritance and PPI but payments remained as planned whole way through.
Never did we say 'but we are only meant to pay back X amount' because thats not what its about.
The original plan is to aim to pay back X amount using your disposable income however you will always owe the full debt amount and assets, windfalls, payrises, ppi etc goes in the pot towards repaying.
If we had received PPI/windfalls etc without an IVA it (well most of it) would have been used to pay off some debt.
Sorry it seems that youre friend is paying back more than planned but ultimately she borrowed a lot more amd as much as possible needs to be repaid then any remainer will be written off at the end.
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luluj
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by luluj » Mon Dec 03, 2018 12:53 am
Abbiesmum - point well made. I saw our iva as a loan over 5 years with a flexible rate that changed depending on our earnings ..ticked it off month hy month on the poster stuck to the fridge door, added in overtime, and windfalls ..paid over inheritance that thankfully, but sadly, saw our iva end 12 months early as 100% received including fees, statutory interest was written off by our creditors in a f&f offer.
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Lisa Thomas
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by Lisa Thomas » Mon Dec 03, 2018 10:41 am
A debtor always owes the total debt and interest and costs in full in an IVA. Only at the end of a successful term would any balances be written off.
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Lisa Thomas
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by Lisa Thomas » Mon Dec 03, 2018 10:41 am
I suspect a years extension will apply to your friend unless she has less than the £5k minimum share of equity, assuming she has the 'standard' terms.
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