Who is getting the extra payment over my original debt? I am with Payplan.

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dan40
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by dan40 » Sun Jun 25, 2017 1:04 pm
Good afternoon all
I'm in an IVA and as agreed at the start would run for 6yrs. I'm in the 6th yr with 7 months left to pay. My original debt was 30,649. I've paid 34,986 so far. My reckoning by the end of the 6th year I'll have paid around 37.500. Why would they need equity release when I'll have paid over 6k more than the original debt. I just want it finished. At the start payplan told me no interest gets paid it is frozen. Who is getting the 6k+ over my original debt. ???
Thanks.
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kallis3
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by kallis3 » Sun Jun 25, 2017 2:45 pm
Hi,

Don't forget there are fees to be taken into account as well.
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Foggy
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by Foggy » Sun Jun 25, 2017 3:47 pm
During an IVA you always owe the full original debt plus fees and possible statutory interest. On a debt of £30k, fees would be around £2000 Nominees fee plus disbursments, Supervisors fee of around £4500 and stat. interest of about £14,400 ----- so £ 50,900. Until that figure is hit, or the IVA runs it's course you need to keep paying.
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