IVA! Pay off early????

[ukpurple_angel]

Hello. My name is Michelle and obviously I have an IVA which is why I am here. Actually, I am here because my friend saw a letter I received yesterday from the IVA Council and wanted to research into my IVA. From looking on this website and looking into my paperwork, I would like some advice on my situation.

Back in April 2006, I joined Gregory Pennington as at that moment in time, I thought it was my only hope! I was paying out money that I just didnt have to creditors - in some ways paying creditors with other creditors (Credit Cards) Looking at my paperwork, April 2006 I was in debt by £20004.98 and paid a monthly repayment of £237.23. This was still hard going finding this money each month. In July 2006, Gregory Pennington got me in touch with Freeman Jones and the IVA got put in motion.

In August 2006, I had a one 2 one meeting with someone from Freeman Jones and loads of paperwork. I was now £19078.91 in debt.
It was set out that I would pay £200 x 24 months and £331 x 36 months. Now checking the comparison of estimated outcomes between banruptcy and V.A, I can see that I would pay £16716 back. However, £6728 are the FEES!!!! Leaving the creditors £9989 (52.35 p/£)

It is now March 2008 and I have paid £3616.50 not including this months payment. I will write to Freeman Jones and find out the fee for early settlement

1) can anyone give me some idea what I should be expecting to pay as the early settlement figure???

2) should the Freeman jones fees be this high (£almost 7K) ?

3) Will Freeman Jones have an actual figure they want off me ?

4) How do Freeman Jones fee's work if I settle early? £7K over 5 years??? i logically work out that 2 years would be £2800

5) when going for a mortgage will i still need a 25% deposit even tho I have paid off the IVA early and have the certificate as proof

6) Freeman Jones have recently increased my monthly payment to £216.50 and I am still hard up with the increases of utilities, fuel, food etc etc - Freeman Jones say this is right! I have nothing to acount for items such as new tyres for my car, car service, utility companies wanting double payment, etc

7) it wouldnt be me personally paying the settlement how do I go around that? with regards paperwork???

i would appreciate any feedback!

Michelle

[Lisa2009]

Hi

1) You will need to raise as close to the original dividend promised, less some for the years of fees you wont be paying.

2)Them fees are about normal

3)You could try asking them but its often quicker to just make an offer.

4) Look at your report. The annual fees should all be listed in there so you should get an idea of what exactly to knock off.

5) The IVA will stay on your credit file for 6 years from the start of the IVA so you may still need a deposit and could possibly be subject to slightly higher interest rates.

6) You could try asking your IP for a complete breakdown as to how he got to that ammount from your I&E.

7)Send a letter to your IP stating that the money would be coming from a third party and would only be payeable if your offer of early settlement is accepted.

Hope this helps