Payments not made to creditors

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Mhug
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by Mhug » Wed Apr 18, 2018 9:47 pm
Hello. New to this forum.

I entered an iva in November 2014. Upon checking my credit score I noticed that according to my financial accounts no payments had been made to any creditors until November 2016. Is this normal?

I have had nothing but trouble with the iva company and am starting to feel like ive been ripped off. They have taken nearly £3000 in the 2 years they hadnt been paying my creditors. Should i seek further advice?

Thanks in advance
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Foggy
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by Foggy » Thu Apr 19, 2018 6:56 am
It is normal for the first payments, as agreed with the creditors, to go towards fees, then the dividend is distributed quarterly, 6 monthly or even annually after that, according, again, to what was agreed with the creditors. Payments and balances showing on the credit report will be meaningless as creditors deal with IVA payments in different ways .... many set up dummy accounts and simply freeze the real account, so it will show no payments at all ever again.
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Lisa Thomas
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by Lisa Thomas » Thu Apr 19, 2018 8:21 am
I expect the £3k has been swallowed up in costs. Some IPs do not pay a dividend until the end of the IVA, depending on the figures involved.

Check your proposals and modifications to see the proposed dividend dates or if in doubt ask your IP about it.
Mhug
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by Mhug » Thu Apr 19, 2018 8:28 am
Thanks for your help. I was starting to think they had jist been taking my money and not paying the creditors
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Foggy
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by Foggy » Thu Apr 19, 2018 8:35 am
Mhug wrote:
Thanks for your help. I was starting to think they had jist been taking my money and not paying the creditors


Might I ask which firm you are with ?
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