i see a lot of posts refering to IVA's failing after a substantial length of time and if this happens andy has quoted 'you are back to square one' with the creditors. i am just approaching my 4th year in an IVA and if the worst happened and my IVA failed i would have paid into the IVA about £30,000 from a debt of £50,000. would i then owe the creditors £20,000 or would i owe the £20,000 and 4 year's interest?
I am sure that this would not happen as at this late stage your IP would like as not move heaven and earth to successfully conclude the IVA one way or another.
However, to answer your specific question, you would have paid 30k back, less IP fees. If these were 5k then you would owe 25k. Creditors would not charge you interest for the 4 year period but you would find that they may do so once your IVA had failed.
Regards.
Last edited by size5 on Wed Sep 09, 2009 1:28 pm, edited 1 time in total.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
Agreed - many creditors work on the basis of "substantial completion" meaning that if you have gone a good way to the end of the arrangement they would rarely wish to see it fail. Personally, once a case gets past the three year point - comparing to the same timescale which might be paid under bankruptcy proceeds, then I feel there is a good argument for conclusion if the circumstances would warrant this.
Hi agree with Size5 that your IP will try their very hardest to agree the conclusion rather than failure so far through the IVA and with the calculation in the event that a satisfactory conclusion wasn't met.
Kind regards,
Angela Rosler
Insolvency Manager
Helping people with their debt problems for nearly 10 years.
Contact me directly for free, impartial, confidential help and guidance.
