IVA - am I able to pay back too much?

[lizziej]

I have my creditors meeting arranged - with an offer of 93p return offered - is this too much - all other postings lookto be between 35-60p offers? I don't want to be in a position where they say no - probably worrying over nothing, like my IP said they wouldn't have prepared the offer if they didn't think it would be accepted - but you can't help worrying!

[MelanieGiles]

Hi Lizzie

You can never pay too much back to your creditors if circumstances dictate, but with such a high return are you really sure than an IVA is the right solution for you? Have you also considered a DMP?

How much do you owe to creditors and how much are your monthly payments going to be?

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

[Adam Davies]

Hi
Please make sure that you have explored the possibility of a debt management plan because on that size of dividend you are almost certainly going to be paying a large proportion of the IP fees yourself.
Please post more details
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[iva_squirrel]

Good evening Lizzie,

I agree with both Melanie and Andy that a debt management plan could be the solution for you. Debt Management Plan is designed to help you make affordable and sustainable repayments each month to your creditors.

Kind regards,



Julia Simavi

Shortlisted with special commendation for Debt Counsellor of the Year by Credit Today Awards 2007

View my profile:
http://www.supersonicsquirrel.net/julia ... rofile.asp

Visit my website:
http://www.supersonicsquirrel.net

Credit Today Awards 2007 http://www.credittoday.co.uk/awards/winners.htm

[lizziej]

We owe £75k unsecured - our miminum payments each month to our creditors is £2000 - our IVA offer is £1200 a month - DMP was discussed but both my husband and I prefer to know that from day one the interest is not going to suddenly will hiked up again etc or the full amount requested!

[kpw]

Still seems very high. You really need to look at a good DMP . DMP's are a lot more flexible should your cirumstances change and £1200 per month for 5 years is a big commitment. You must have good inome levels between you and 75k of debt would probably be better managed and be far less expensive on a good DMP

[sonyse2t5]

I am sure this offer will get creditors talking. Strange but paradoxical as IVA are suppose to write off debts - its key selling point

I certainly won't want to give any £££ to any IP who can't write off no debt.

[MelanieGiles]

Can we please stop saying that IVAs are supposed to write off debts! It is phrasing like this - and I do accept that many in my profession have used this as a means of marketing in the past - that gets the product a bad name.

An IVA's primary purpose is to allow an affordable repayment programme over a realistic time period when you recognise that you can no longer afford to maintain contractual repayments. And members of my profession are not here to insitigate and assist with writing off debt.

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

[sonyse2t5]

There are alot of the miselling about debts written off. Point taken....but isn't this is what actually happens in an IVA?? It is the Insolvency act and not IP that writes of debts but they are oposite sides of a coin.

How many people with an IVA have no ££ written off.It is the inconvience truth shall I say?

[MelanieGiles]

The law of the land allows for the remaining debts to be written off when an IVA has been successfully concluded - usually at the end of a 5 year repayment period.

I agree with the misselling point, which is why the Advertising Standards Agency just recently insisted that 17 debt management firms amend the flavour of their advertising of IVAs.

If someone can afford to pay all of their debts in full, then they should not be in an IVA unless this is done for very exceptional circumstances.

The role of the IP in an IVA is to collect the monies pledged by a debtor to their creditors, and to ensure that the debtor fully complies with the terms of the aqrrangement they agreed by creditors. As I have said before - we are not the instigators of writing off the debt - this is done by agreement between debtor and creditors.

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

[sonyse2t5]

Lizzie

About your concerns about creditors freezing interest for the duration of your dmp.....no creditors will give that assurance! Only Capital 1 Bank comes close as they say we will not add interest as long as you keep paying the agreed dmp payment...halifax will review every year and so will MBNA, and TSB,HSBC will insist on consolidatory loans....and I have not mentioned others as not sure their actions...creditors are unpredictable. Others have posted here about charging orders put on their properties years later on DMP! And going to court to fight them

You don't want those risks. IVA your creditors