I would have done thing's a bit differently

[TJKKB]

Hi, this is my first post although I'm about 12 months into an IVA with debt free direct. I've looked on this forum a couple of times, unfortunately not until it was already all sorted otherwise I would have done thing's a bit differently - I've just spotted one post that seemed to suggest that an increase in wage can increase the overall dividend value! It's been about 18 months since I first started looking into an IVA but I'm sure that DFD told me that once a value was agreed then that was it and any extra cash paid in would be applied to the overall agreed value - What I'm getting at is that I've been paying in 50% of my bonuses as per my agreement thinking that I've knocked off about 4 months so far. Is this the case or am I still locked in for another 48 months with an increased dividend??

[pm.e]

Hi,

Im not an expert, but I think the dividend you proposed is the minimum the creditors will get in the £.

Check your terms and conditions of your IVA, as I think that any windfalls, bonus (%) etc will have to be paid into the IVA.

I dont think the term will decrease.

Hope this helps.

[scaredkez]

hi welcome to the forum, by paying over your 50% does not knock anything off the months i am afraid to say, its all about paying your creditors as much back as possible
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[Sarah]

Hi

I agree with the above paying thi in does not mean that you will finish you IVA any earlier just that you will be giving your creditors back more. Unless of course you are paying 100p.

I hope this helps

[MelanieGiles]

And this should have been clearly explained to you by your IP in the first place. The other posters are correct, you do not reduce the term if you pay more, unless you are in the fortunate position of paying all of your creditors and the costs of the IVA in full.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[jpj]

I too was told the same thing as TTKB at the start and never questioned it again!. If I had known at the time that this was not the case I would seriously have considered wether effectively putting my financial life in limbo for five long years was worth it. An IVA doesnt clear your debts,it effectively just puts them on hold..I feel this point should be drummed home more to people at the start ! JPJ

[iva experts]

I disagree jpj, as we all know an IVA is an INDIVIDUAL Voluntary Arrangement, as its name states it all depends on the individual circumstances of each person.

Yes it’s true you have to pay as much as you possibly can, for some individuals that may be 100p/£ PLUS I.P Fees PLUS Statutory Interest. However for others it may be the minimum 25p/£, the rest of their debt gets written off. The remaining debt does not get put on hold but legally gets written off.

Best Regards. IVA Experts

[MelanieGiles]

And I fully concur with iva experts. IVAs should only be taken out by individuals who really want to pay back as much as they can to creditors. They are not a quick fix to reduce payments and then take no notice of changes in your circumstances which might improve your payments to the people you have borrowed money from. But the important thing is to be advised about this by the professionals you choose to represent you from the outset, so you can decide whether the procedure is for you.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[TJKKB]

Don't get me wrong, whatever the circumstances were leading up to this point I fully accept that I'm responsible for being in this position and I don't argue against paying back as much as possible to my creditors. It's just that I made a decision based on what I was told at a time when I was stressed/naive/panicking and I clung on to all the different things I was told to expect. The idea that I can actively get my life back on track faster has got me and my family through some pretty lean times over the last 12 months - we've managed to get through the difficult bits like the kids birthdays and christmas and it's been a comfort to think that although I'm working myself into the ground at least I'm helping to get us to the point where things are fixed that much quicker. To be honest it's a bit of a blow to find out that's not the case...

[ray_a]

I disagree jpj, as we all know an IVA is an INDIVIDUAL Voluntary Arrangement, as its name states it all depends on the individual circumstances of each person.

Yes it’s true you have to pay as much as you possibly can, for some individuals that may be 100p/£ PLUS I.P Fees PLUS Statutory Interest. However for others it may be the minimum 25p/£, the rest of their debt gets written off. The remaining debt does not get put on hold but legally gets written off.

Best Regards. IVA Experts

Just reading this response has opened up my problem again with my statutory interest problem.

I am attempting to vary this on the basis of the fact that we need to live and we need some capital for both to replemish our home and for the business.

Have you any experience in dealing with this problem please?

[MelanieGiles]

Are you trying to avoid paying statutory interest? Sorry I don't remember your earlier posts specifically. If so, you will need to have good grounds for that argument if there is money available to pay. What does your IP say about this suggestion?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[hara]

At the end of the day I feel that we have an oblgation to pay as much as possible to the creditors while trying to live a decent life and not in misery and unhappines.
hara.

[TJKKB]

I agree, but I think it's important to remember that there's more than debtor and creditors involved in this situation. I think that there's an obligation on the part of the IP to give clear and consistent answers at every stage of the process. There are occasions when I have called my IP 2 or 3 times in one day and been forced to speak to a different person every time each of whom has given me a different answer to the same question. As time's gone on I've learned to start disecting the replies and cross examine whoever I'm speaking to in order to work out if I can trust the response (also every phone call is now followed up with a letter from me laying out my understanding of what was discussed) but at the start of this process I took what I was told verbally as gospel. A year into the IVA I've found out by chance that one of the factors I considered principle to my decision was incorrect - my issue is not that I have to pay back as much as possible it's that what I was told turns out to be wrong. It makes me wonder if I genuinely know as much about this process as I thought I did prior to signing on the bottom line.

[Sarah]

I completely agree with you... yo should not have been mis-lead, i also know the feeling of being passed from one person to the other!I have had that a couple of times!

[hara]

I am surprised that ou have to speak to different people.In my case I have my main contact including her mobile and she is very efficent and always returns my callspromptly.It may be ideal to establih ,in your case who your contact wiil be in case you need advice so that you have one person to approach during this long period to conclusion of iva
hara.