A few IVA questions from a newbie

Get expert opinion. This is the place for new questions to be posted.
8 posts Page 1 of 1
wakeywakey
Posts: 14
Joined: Mon Jan 23, 2017 9:48 am
by wakeywakey » Thu May 04, 2017 7:49 am
Hi guys,

I am just starting the process and I have a few questions. I hope it's ok to ask several one post?

1. Defaults- I've heard you can still receive defaults after the IVA has started. Do these get backdated to the IVA start date and how?
2. Does the IVA come off your credit file after six years from start or after six years from finish?
3. Is it true that the IP takes a nominee fee of upto £2,000, if so, how is that paid?
4. I'm worried about the IVA register. I can't believe that in this day and age, there's a register for this. It's not a crime is it? Anyway, can you fight being on the register and how?

Thanks guys
User avatar
kallis3
Forum Expert
Posts: 71637
Joined: Mon Mar 17, 2008 4:02 pm
Contact
by kallis3 » Thu May 04, 2017 8:20 am
Hi,

You may get defaulted but they should drop off at the six year mark.

It depends - it will be from when you receive your completion letter.

All fees are included in your payments.

Unfortunately you will be on the register but not many people know about it. Unless you have a compelling reason, such as an abusive ex and a need to hide your details there is nothing you can do about it.
User avatar
Michael Peoples
Industry Expert
Posts: 15097
Joined: Mon Nov 03, 2008 12:36 pm
Contact
by Michael Peoples » Thu May 04, 2017 12:24 pm
The register is outdated in my opinion as most creditors can access your credit file anyway. The register would be more for trade creditors who can look to see if their new prospective customers are a risk but this is a very small minority of cases.
User avatar
Foggy
Forum Expert
Posts: 23217
Joined: Fri Dec 17, 2010 11:14 am
Contact
by Foggy » Thu May 04, 2017 6:31 pm
1. Defaults- I've heard you can still receive defaults after the IVA has started. Do these get backdated to the IVA start date and how?

Defaults should be dated on or before the date of the IVA ... however, creditors do not have to register a default.

2. Does the IVA come off your credit file after six years from start or after six years from finish?

The IVA will come off the credit file after 6 years from the start ( assuming it has been finished)

3. Is it true that the IP takes a nominee fee of upto £2,000, if so, how is that paid?

The Nominee fee will be in your paperwork, as agreed by the creditors --- it will come out of your normal payments each month.

4. I'm worried about the IVA register. I can't believe that in this day and age, there's a register for this. It's not a crime is it? Anyway, can you fight being on the register and how?

The only reason you will not be on the register would be if there is a real risk of danger (domestic violence etc) which would have to be proved. Even then they do not have to comply.
wakeywakey
Posts: 14
Joined: Mon Jan 23, 2017 9:48 am
by wakeywakey » Sat Jun 10, 2017 12:58 pm
Couple more questions.

I've been told that council tax IS included in the debt, which is really putting me off going for it.
Surely council tax is a priority debt so why is it included.?

Also, it appears the IVA firm keeps 8 months of my payments for themselves before paying any to my creditors. I don't like this.
Will the creditors accept this length of time without any payments?

Plus, if council tax is included that means you don't pay your council for 8 months and could be jailed?
User avatar
kallis3
Forum Expert
Posts: 71637
Joined: Mon Mar 17, 2008 4:02 pm
Contact
by kallis3 » Sat Jun 10, 2017 1:07 pm
Council tax is a priority debt so should not be included but some firms seem to do this but it is nothing to worry about. You will still need to pay your council tax.

Creditors will be aware of this - again, nothing to worry about. Once accepted you will be fine.
User avatar
Foggy
Forum Expert
Posts: 23217
Joined: Fri Dec 17, 2010 11:14 am
Contact
by Foggy » Sat Jun 10, 2017 1:11 pm
wakeywakey wrote:
Couple more questions.

I've been told that council tax IS included in the debt, which is really putting me off going for it.
Surely council tax is a priority debt so why is it included.?

Also, it appears the IVA firm keeps 8 months of my payments for themselves before paying any to my creditors. I don't like this.
Will the creditors accept this length of time without any payments?

Plus, if council tax is included that means you don't pay your council for 8 months and could be jailed?


Since a court ruling council tax is now regarded as a debt (after all it is actually due, in full, in April each year, the installments being repayments). I am not sure if all IP's do include it, but, apparently, they should. If CT is included in the IVA the council are not allowed to take any enforcement action so you won't be jailed.

The "8 months payments" the IP's "keep for themselves" is usually payment of the Nominees fees, and is by agreement with the creditors, who might seek to limit the amount at the creditors meeting. It is pretty much standard and creditors are happy with the principle.
User avatar
Michael Peoples
Industry Expert
Posts: 15097
Joined: Mon Nov 03, 2008 12:36 pm
Contact
by Michael Peoples » Mon Jun 12, 2017 8:02 am
Very few IVAs will allow you to keep the first eight payments although most firms will at least try. Creditors normally restrict the fee to the first five and sometimes only three but this is agreed between creditors and IP at the meeting and does not cost you anything extra.

http://www.bailii.org/ew/cases/EWHC/Ch/2013/4165.html

The link above explains the court case regarding council tax and business rates so it is the law that the debt is included and not a matter of choice for the IP. You cannot go to jail or anything like that unless you do not pay next year's council tax.
8 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”

Who is online

Users browsing this forum: No registered users and 12 guests