Second Year Review - Part 2

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JustPlainStupid
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by JustPlainStupid » Mon Jul 31, 2017 10:40 am
Hi all

Had a chat with someone from Harrington Brooks this morning about my second year review.

He said that my IVA would complete when I've paid the original debt (actually 67k, not the 55k that I thought - not sure why unless that includes fees?)

Anyway, I'm just about to e-mail him to get confirmation on the following:

1. Increasing my payment to £1595 per month would mean that the IVA finishes early
2. What would be the predicted date to finish
3. The total amount of debt
4. The total amount of fees
5. That the creditors can't add statutory interest
6. That once the debt and fees are paid, there would be no further possibility of being asked to remortgage or extend the period of the IVA

If the above looks favourable to me, I could live with the increased payments.

Does anyone have any thoughts? Knowledge is power! I'm asking questions that I was afraid to ask at the start but they will make a big difference if the answers mean that I can finish this sooner. I'm not worried about my credit rating, etc. I'd rather it was buggered for the whole 6 years and more so there's no danger of getting into a similar position.

Cheers
Andy
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kallis3
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by kallis3 » Mon Jul 31, 2017 10:49 am
Check your paperwork to see whether or not statutory interest is to be paid.

Once you have paid off your total debt plus fees then your IVA will conclude and no creditors can come after you for anything and you would not have to remortgage.,
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Foggy
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by Foggy » Mon Jul 31, 2017 10:53 am
It looks promising. £67k looks like about the right figure for original debt and fees + disbursements.
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Lisa Thomas
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by Lisa Thomas » Mon Jul 31, 2017 11:10 am
JustPlainStupid wrote:
Hi all

Had a chat with someone from Harrington Brooks this morning about my second year review.

He said that my IVA would complete when I've paid the original debt (actually 67k, not the 55k that I thought - not sure why unless that includes fees?)

Anyway, I'm just about to e-mail him to get confirmation on the following:

1. Increasing my payment to £1595 per month would mean that the IVA finishes early

Only if this means in making the payments the total debt and interest and costs are paid in full - at which point the payments should stop.

2. What would be the predicted date to finish
3. The total amount of debt
4. The total amount of fees
5. That the creditors can't add statutory interest

I expect they can - usually a standard term in your IVA proposals - why do you think creditors cant add interest for the post IVA period?

6. That once the debt and fees are paid, there would be no further possibility of being asked to remortgage or extend the period of the IVA

If 1) is paid in full before the extension would kick in then there should be no need for the extension.

If the above looks favourable to me, I could live with the increased payments.

Does anyone have any thoughts? Knowledge is power! I'm asking questions that I was afraid to ask at the start but they will make a big difference if the answers mean that I can finish this sooner. I'm not worried about my credit rating, etc. I'd rather it was buggered for the whole 6 years and more so there's no danger of getting into a similar position.

Cheers
Andy
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Michael Peoples
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by Michael Peoples » Mon Jul 31, 2017 11:42 am
I would estimate that you would need to repay in the region of £80,000 to complete the IVA provided there is no statutory interest to be applied. If you know how much you have paid to date you should be able to roughly calculate when the IVA will complete provided there are no more changes.
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JustPlainStupid
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by JustPlainStupid » Mon Jul 31, 2017 12:25 pm
@Lisa

Not sure about this statutory interest thing. The guy on the phone said that the IVA would finish once the original debt plus fees had been paid. Foggy has said in a few posts I've read "if statutory interest is added", implying that it isn't in every case.

So, let's say Michaels assumption is correct and that the total debt and fees is £80k. If the IVA runs to 6 years (5 plus a year because I'm unlikely to be able to access the equity in my house), then I would end up paying £95k. I'm assuming that the creditors *could* turn round and decide that they want some interest and make me run the IVA for the full 6 years.

Either they want it, or they don't. If they want it then the guy on the phone has given me duff information.

So, at the 2 year anniversary, I would have paid £18720 plus £498 undeclared income share (in dispute because they've taken my last pay packet from my last job as salary when £1400 of it was redundancy pay).

*IF* Michael is right and the debt including fees is about £80k then I'll hit that in 38 months time - 5 years and 2 months since the start of the IVA.

Thought I had this straight in my mind. Now I'm starting to feel confused again.

Cheers
A
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Foggy
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by Foggy » Mon Jul 31, 2017 12:43 pm
In my proposal ( and I assume I was not so annointed alone) statutory interest was specifically excluded, which is why I always say "possible Statutory interest". Also, in cases where statutory interest hasn't been excluded at the outset, it is possible to propose a variation asking for it to be so -- and, indeed, is a reasonable request on the grounds that, if the situation arises whereby creditors add such interest, they are already getting far more than they expected, or were entitiled to, had the IVA run it's normal course under the terms and amounts agreed at its inception.

It strikes me as somewhat unfair to penalise a debtor because they have been able to pay back more than anticipated.
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Michael Peoples
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by Michael Peoples » Mon Jul 31, 2017 12:44 pm
If there is no statutory interest to be applied then your calculations seem correct. The statutory interest will be addressed within the proposal and/or terms and conditions and is not something that creditors can add on later if you hit the 100p in the £. It sounds like the information you have been given is correct and once you have hit that £80k mark your IVA should finish.

I calculated the £80k being the debt of £67k plus 15% supervisor fee £10050 and the balance would be the nominee fee and disbursements.
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JustPlainStupid
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by JustPlainStupid » Mon Jul 31, 2017 12:54 pm
Thanks all :)

It'll be interesting to see what happens! If I can knock a year off the IVA by upping the payments and I pay back 100p in the £ then that feels like a small victory. No different to paying more than the minimum each month on the original debt.

Just to add, he's replied saying that he's passed it to the completions team and will get back to me. I'm not going to agree to anything until I have answers to all of this. I don't think they'll commit. I think that they'll say that the creditors still reserve the right to add on the SI for any reason they fancy.

Cheers
A
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Lisa Thomas
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by Lisa Thomas » Tue Aug 01, 2017 9:19 am
The interest point won't be "for any reason they fancy" - it will be in your terms.

Some of my IVAs are worded that statutory interest will not apply but sometimes creditors insist that this is put in again.

If you had 'standard' terms I expect SI will be included.

The answer will be in your proposals, T&C's and modifications...
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