how are arrears on IVA's dealt with ?

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Scott.mn
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by Scott.mn » Mon Jan 18, 2010 1:31 pm
Hi,

Ive recently been struggling with my IVA I had spoken to my IVA company (Kingsgate) & agreed to make a down payment for a few months being told at the time that i had the option to either pay the arrears back at then end of the IVA so it would be like 2months extra payments at the end or pay it back gradually when i can over the months. The best option for me was to just pay it back at the end of the IVA. Now i am being told by somebody else at the company because the person i was dealing with has now left the company that if i was to pay it back at the end of the IVA they would expect me to pay for an extra 6 months. Is this correct as this seems very strange? Is there anything or anywhere i could go to read up on how arrears on IVA's should be delt with & what options there are?

Thanks

Scott

 

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Michael Peoples
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by Michael Peoples » Mon Jan 18, 2010 2:12 pm
Hi Scott and welcome to the Forum.
It appears that your IP fees could be charging you an additional year's supervision and costs which would explain the extension. That seems harsh but they may be entitled to do this under their terms and conditions. If possible the best option may be to try and clear the arrears before the completion of the IVA or if this is not possible it would be worth borrowing the money to avoid these additional costs. Speak to your IP directly as they may be prepared to waive any additional costs particularly since you were lead to believe this was the case by a member[albeit ex member] of their staff.

 

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Scott.mn
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by Scott.mn » Mon Jan 18, 2010 3:00 pm
Thanks for the information, Is there anyway you can change you IP? I have had problems with Kingsgate in the past they just seem to make things harder for me instead of better & they like to complicate situations.

 

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kallis3
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by kallis3 » Mon Jan 18, 2010 3:07 pm
Hi Scott and welcome from me as well.

Unfortunately you won't be able to change your company. You would need to go back to court and it would cost a lot of money to do so.

 

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Michael Peoples
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by Michael Peoples » Mon Jan 18, 2010 3:21 pm
As Jan says it is very expensive and relatively pointless to try and change your IP. However, if you have been treated badly there is no excuse for IP firms to work like that. It may be worth sending in a letter to your IP [or an email] explaining why you are not happy as no IP wants clients who feel wronged. This may make thingas easier until the IVA is over.

Sorry cannot be much more help but let us know how you get on.

 

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MelanieGiles
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by MelanieGiles » Mon Jan 18, 2010 9:02 pm
Why don't you ask them to clearly explain why the IVA needs to extend for so much longer? If they charge fees as most firms do these days on the basis of a percentage of realisations, there should be no additional fees charged to increase the duration.

 

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Scott.mn
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by Scott.mn » Tue Jan 19, 2010 7:46 am
I think i might do that actually, might actually get them to send it me all in writing as im pretty sure the lady on the phone said to me it was the creditors that would want the extra 6 months. Thanks Everyone
Last edited by Scott.mn on Tue Jan 19, 2010 7:48 am, edited 1 time in total.

 

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Shining
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by Shining » Tue Jan 19, 2010 7:52 am
Hope it's soon cleared up Scott and they explain fully x
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