am i right?

[suzie2997]

HELLO

I have just received my 4th year annual report and ijust want to clarify something. I started the iva with a lower income and around year two i started a commission based job with income that fluctuates greatly.

The solution to this was to put aside 50% of additional income each month and i have done this for the last three years sending regular cheques to my IP.

On the annual report it states credito claims logged to date are 27,388. It then goes onto say Receipts to date 22,023.

It then lists fees, vat costs etc and says dividend paid to creditors 10,601 and a balance in the bank of 3.500.

I have nearly 5,000 in the bank due to additional earnings i am waiting to be asked for, so my thinking was this added to the amount "receipted" would nearly get me there. However with only 10,000 of this actually going to creditors is it that the full 27k has to be paid back to creditors ( ie they need another 17k off me!) or that i pay back a total of 27k which i nearly have?

I am confused i have emailed my IP who didnt really get what i was saying and just told me i was paying back 38p per pound - but how is this possible when i am only 5k off what i owe surely thats higher than 38p in the pound?

I just want to know if im just wishful thinking or if there is chane i could be out of the woods before the 5 year mark

Thanks

Sue

[Adam Davies]

Hi Sue and welcome
You will pay extra into your IVA upto the original amount you owed going into the IVA and IP fees, so extra payments wil only shorten your IVA once you have paid this full amount.
Your creditors will just receive a higher dividend than the original 38p in the pound [this is the figure returned to your creditors after IP fees have been deducted]
Regards

[suzie2997]

Thanks for replying.

So im wrong in thinking that there is only 5k left to repay?

As this would take me to the original amount owed?

Thanks

[kallis3]

Even though you only have £5k left to pay into your IVA, you are always liable for the full amount of money that you borrowed until the IVA has been completed.

Any extra that you pay in just means that your creditors will get a better dividend as Andy says.

[suzie2997]

Hello

Sorry im a bit confused, the full amount owed to creditors was 27k - i am 5k off this as i have paid 22k back. so when 27k is paid off i will still have to continuing paying more back is that what you are saying or will my agreement be completed?

[kallis3]

If £27,000 was the full amount you owed the creditors pre IVA, then you will only pay that amount back, plus your IP fees so it will look as though the creditors have got more.

This means that your creditors will receive back 100p in the pound, which is great. If this happens within the five years, then your IVA will complete early.

[MelanieGiles]

I don't think you are taking the IPs fees and the other costs of the arrangement on board Sue. If you owed £27k, and say there were fees of £7k to the IP and other costs of say £2k, you would have ot pay £36k to pay your debts off in full.