I have roughly 3 years payments of 192.00 a month and have just received 15,000 from a will and asked my iva relations person for a settlement figure and they've quoted over 24,000 which is 3 times what I still owe. How is this correct. I'd like some advice please.
You will always owe 100% of your original outstanding debt, plus any fees and statuary interest at 8% or so. The figure you received when your proposal was accepted is a minimum dividend to achieve. You will lose all of the £5k to your IVA and ultimately your creditors. There is no reduction in this total amount payable until the completion process where any outstanding difference to the proposed dividend and what you have actually achieved is then written off.
Last Payment made 04/12/14. Completion Certificate 25/7/15. IVA company GT. No Issues
The ampunt you agree to pay over during the IVA is not the new figure you "owe" -- it is what you agree to try to pay back, at least. As Merlin said -- you still "owe" the full original debt, plus fees and statutory interest. Fees are usually around 15% of the money paid in, plus around £2k. Statutory interest is 8% p.a, simple, calculated on the reducing balance.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Visit my blog here : http://foggy.blogs.iva.co.uk/
Agree with others comments but just wanted to add if your total debt at the beginning could be cleared by your inheritance you could seek a full n Final offer and ask your creditors to remove the statutory interest clause.
I received inheritance during my iva and concluded ours through a f n f with statutory interest being removed. Creditors received 100% back, IP fees paid two years early ... it is worth asking, but not guaranteed
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !