Paying off IVA early

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Jukesy82
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by Jukesy82 » Fri Jan 12, 2018 9:22 am
I've been on an IVA for about 2 years.

My husband has just received inheritance and we want to pay it off early so we can build credit for mortgage one day.

We contacted Payplan and offered the full settlement. Provided them with any information they requested within 24 hours. However they've now said it can take up to 6 months to set up the meeting with the creditors and that we have to continue making the monthly payments but that won't be taken for the settlement. Means we lose around £1500 and can't get any further forward. I naively thought we'd just be able to make a payment and move on.

It just seems so unfair when we are offering the full amount.

Is his normal to take so long? And to then not deduct any payments we've been making in the meantime?

Can I contact the individual creditors myself to make settlements quicker?

Would appreciate any help.
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kallis3
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by kallis3 » Fri Jan 12, 2018 10:22 am
It should not take take that long to arrange a meeting. Keep on at them!
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kallis3
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by kallis3 » Fri Jan 12, 2018 10:25 am
You also tell them you want any monthly payments deducted from your offer. I will also say that even if you settle early, your IVA will remain on your credit record for the full six years.
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Foggy
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by Foggy » Fri Jan 12, 2018 12:38 pm
As Kallis says, it is not at all normal for these things to take so long -- Payplan are in a bit of a mess and passing this on to clients ! Also, it is common practice with other firms that you are able to make the fact that interim payments are deducted from any lump sum part of the offer conditions. Payplan do tend to have their own unique approach to many things and are becoming less and less helpful as time marches on.
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MerlinL14
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by MerlinL14 » Fri Jan 12, 2018 1:01 pm
As bad as it sounds 'not being fair' is the worse it gets. We have to take some responsibility for the situation we found ourselves in. Any way or means to pay what we owe is a bonus to our creditors and this is the gamble they take when we enter an IVA, most of the time they lose the gamble and get a far less dividend then the total sum. When it is as personal as your situation it really does s**k and we can only but empathise with you and best support you with kind works and sage advice. I can understand you wanting this over and done with, but your IVA company are not going to jump hoops because of your feelings. Unfortunately contacting your creditors directly will most likely make you feel even worse as they have no interest in personal problems at all. Hang in and hopefully 6 months turns into a figure plucked out of thin air and you get resolved far quicker. Good luck.
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Foggy
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by Foggy » Fri Jan 12, 2018 1:13 pm
MerlinL14 wrote:
As bad as it sounds 'not being fair' is the worse it gets. We have to take some responsibility for the situation we found ourselves in. Any way or means to pay what we owe is a bonus to our creditors and this is the gamble they take when we enter an IVA, most of the time they lose the gamble and get a far less dividend then the total sum. When it is as personal as your situation it really does s**k and we can only but empathise with you and best support you with kind works and sage advice. I can understand you wanting this over and done with, but your IVA company are not going to jump hoops because of your feelings. Unfortunately contacting your creditors directly will most likely make you feel even worse as they have no interest in personal problems at all. Hang in and hopefully 6 months turns into a figure plucked out of thin air and you get resolved far quicker. Good luck.



Hi Merlin. Whilst I agree with the spirit of your post I have to say that Payplan take the biscuit! Many, if not most, firms will comply to the agreed standards and get a variation for a F&F offer drafted within 21 days and a meeting called within 28 days of that --- 2 months (give or take). They will also allow interim payments to be deducted to be included as a condition of the offer --- it is not for Payplan to dictate the terms .... this is the client's offer, not theirs ! Payplan have, reportedly, recently restructured and lost a portion of it's staff in the process. It is buckling under the pressure and clients are losing out on decent service standards. They don't need to jump hoops -- just provide a decent standard of service and support.
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kallis3
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by kallis3 » Fri Jan 12, 2018 1:14 pm
Also not a good idea to contact your creditors - debts may well have been sold on and it could mean failure of your IVA which could lead to interest and charges being added on.
Jukesy82
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by Jukesy82 » Fri Jan 12, 2018 4:05 pm
Thanks everyone. Foggy are these standards written somewhere that I could quote to them please?

Merlin: I whole heartedly take responsibility for my situation. However they have made quite a bit of money out of me so far with the fees they add on and are meant to be providing a service and promote themselves as helping financial situations so it doesnt sit right with me that they work this way

Foggy wrote:
MerlinL14 wrote:
As bad as it sounds 'not being fair' is the worse it gets. We have to take some responsibility for the situation we found ourselves in. Any way or means to pay what we owe is a bonus to our creditors and this is the gamble they take when we enter an IVA, most of the time they lose the gamble and get a far less dividend then the total sum. When it is as personal as your situation it really does s**k and we can only but empathise with you and best support you with kind works and sage advice. I can understand you wanting this over and done with, but your IVA company are not going to jump hoops because of your feelings. Unfortunately contacting your creditors directly will most likely make you feel even worse as they have no interest in personal problems at all. Hang in and hopefully 6 months turns into a figure plucked out of thin air and you get resolved far quicker. Good luck.



Hi Merlin. Whilst I agree with the spirit of your post I have to say that Payplan take the biscuit! Many, if not most, firms will comply to the agreed standards and get a variation for a F&F offer drafted within 21 days and a meeting called within 28 days of that --- 2 months (give or take). They will also allow interim payments to be deducted to be included as a condition of the offer --- it is not for Payplan to dictate the terms .... this is the client's offer, not theirs ! Payplan have, reportedly, recently restructured and lost a portion of it's staff in the process. It is buckling under the pressure and clients are losing out on decent service standards. They don't need to jump hoops -- just provide a decent standard of service and support.
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Foggy
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by Foggy » Mon Jan 15, 2018 11:21 am
Apologies for the delay ... I had to ask a friend !

It will depend upon which terms are used:

In R3 cases the requirement to convene the meeting within 21 days is in Part X section 60(2) .....

"60(2)[Power to requisition a meeting] If requested in writing by the Debtor, or by
Creditors with not less than one-quarter in value of the total amount of Debts subject
to the Arrangement, the Supervisor shall, unless relieved by the Court from so doing,
convene a meeting of Creditors within 21 days from the receipt of such request. "


In the Standard Conditions used in the 2014 Protocol it is in Part IX section 19(2) .....

"19(2) If requested in writing by you, or by creditors with at least one-quarter in value of the total amount of debts subject to the arrangement, the Supervisor must call a creditors meeting within 21 days from receiving such request, unless the court decides he/she need not do so."

However this limit was left out of the 2016 Protocol.
Jukesy82
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by Jukesy82 » Mon Jan 15, 2018 10:06 pm
Oh wow thank you. Interestingly the supervisor emailed me today to say it's with the variations team, no date as to how long they will take to draw up the paperwork (it's been over a month now) and that then they have to give 28 days notice to the creditors Hmm
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Foggy
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by Foggy » Tue Jan 16, 2018 8:01 am
Jukesy82 wrote:
Oh wow thank you. Interestingly the supervisor emailed me today to say it's with the variations team, no date as to how long they will take to draw up the paperwork (it's been over a month now) and that then they have to give 28 days notice to the creditors Hmm



Yes, they do have to give notice to the creditors, but, hopefully, they are on the case now. Best of luck.
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