Hi
We are on payment 22 of our IVA and it has been a struggle. I recieved an large inhertiance sum which was paid into the IVA earlier this year. We have calclated that if we continue with our payments to month 60 we will have paid off all of the original debt plus interest of 7% and the IVA fees. My fixed rate deal on our mortgage ended earlier this year and we are now on the variable rate so the monthkly payment has dropped by £176.
Im in the process of supplying info for the annual review and want to know whether the IVA company will still want us to increase our payments. At the start of the IVA creditors were due to recieve 70% now they will get 100% plus the interest. So I cant see why we need to pay anymore. The extra money from the reduced mortgage payment is useful and we can finally start saving for emergencies, unexpected bills and household repairs/improvements. Also with us clearing the debt will we still have to remortgage at month 54. Thanks
Welcome to the forum Clive
As far as I know, during the annual review your payments may be increased dependent on increases of disposable income.
However, you will only need to pay 100% of debts plus fees - so no interest on top. Should you reach this figure, before the 60 month term, the IVA will be completed and no remortgage will be required.
I think this is how it works, but an expert may be able to confirm this.
I'd have gone for a full & final using that as lump sum as an offer. Not sure who you are with but considering their fee I'd be very cross that they couldn't have engineerd a close off.
I wonder if your IP wanted to keep you in there for their own ends!
Hi. Clive, I would talk this over with your IP, as only there lies the answer.
Pauly, interest can be charged in certain circumstances, depending upon the wording of the proposal. Currently it runs at 8%. Some proposals specifically exclude interest.
Sponge, the inheritance is a windfall and, as such is payable into the IVA in any case. The creditors will not accept an offer of something they are entitled to get in any case.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I was in a similar position and we were able to offer our inheritance as a F&F figure to close our IVA down early, however we were always expecting to repay 100% of our debt so it may be slightly different !
Worth talking to your IP though - we didn't have to pay stat interest so we were lucky but it does depend on your proposal documents.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
Clive I would imagine your payments would increase and you still would not be able to keep any disposable income in the meantime, I guess your IP would take the stance that a lot can happen in the next couple of years, one of you could lose your job, become ill and not be able to work etc? so it would be a case of paying over as much as you can, when you can, month by month and if your reach the 100% plus 8% stat interest and fees prior to month 60, then the IVA would end early
This all seems mad!!! Creditors take there due and so to do IP's. Be very careful with any windfull and carefully consider your position and not anyone elses. I seem to read some very nice comments which I can consider genuine about IVA's and IP's however, I am a sceptic due to my own circumstances. My view is that if your paying for a service you will get a service. If they stand to make any money from you then they will!! Business is about money. This is why we are all here in the first place. As I said this is my view only.
Bottom line, Scimi, at least in my case. Assuming I make all payments due from me, as per the proposal, my creditors will be writing off over half my debt. Which I rate as a good deal for me!
I agree you are paying for a service, (technically the creditors are paying for it, as it comes out of the disposable income), however, I also pay my dentist ... and that still hurts and he gets blood out of me !!!!!
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Dont get me wrong I totally agree. But I agreed to adhere to the rules and I also agreed to terms. So to did my creditors. Or the percentage that counted. This included terms that protected me (reduced payments in time of hardship and so on) So I am going to fight for what I signed up for. Even if this seems amoral and unfair. I have learned over these hard times that number one in my life is family and then me. IVA, IP's and certainly creditors rank a poor last!! Fair enough my problems are my own doing but legislation and government backing count for a lot! We all have rights and feelings. I refuse to feel a second rate citizen because I am on an IVA. IVAs are designed for both the creditors and clients. An IVA is in everyones interest. I for one havent forgot that point.
Thanks for all your input. I seem to have started a lively discussion.
Ive followed this forum for sometime now and this is the first time Ive posted anything so thanks for offering the advise.
The trouble is that ive lost confidence in this whole process. Im not going to say who i was with before as i have a outstanding complaint about them with the financial ombudsman, but my account was transferred to Grant Thornton earlier this year. Because of the very poor advise and service I recived before Im reluctant to trust the IVA provider.I think the previous point is valid this is a money business and IVA providers are out to get as much as they can.
The IVA covered jointly with my wife debts of £50K and after recieving the windfall I had paid into the IVA £32K. We did offer this as a F&F but this was rejected because it wasnt enough and they can see that we can now pay back all we owe. Ok we accept that but why cant that be on our terms, we havent missed a payment, we are both in good jobs, I cant say what will happen in the future, nobody can. We are currently paying over £800 per month, if we pay another £100 a month over the remaining term we will only pay in an extra £3800, thats hardly going to affect length of the IVA.
Hi
Lesley is correct
Your IP is duty bound to recover as much money for creditors as is deemed reasonable. Your inheritance has to go into your IVA and your payments will continue until the end of the five year IVA or earlier if you repay all your original debt, IP fees and any interest if this is added by your IP/creditors.
Regards
The moral of this story is if you maybe fortunate to be left anything for whatever reason. Make sure you know about it and the amounts involved. Make arrangements for another family member or friend to benefit as you cant. The free spirit of the person leaving you something surely could can not conflict with any IP lawsmif they changed their mind?? Who knows maybe a deal could be struck with the certain family member or friend to at least buy a drink for you in whatever memory or honour?? rather than you get nothing. I am sure the IP's would not object to you receiving a drink or the person buying it??
Yes you would pay them. If you were clear and free then it's almost 100% you would. If you could no doubt you would pay to a manageable limit and reduce your payments. I am sure you would by yourself something as well. However, circumstances are different now. Your in an IVA. No matter what you pay in it wont change what you owe or payments? That is unless you can get a F&F. I think if I had £25k and got £20k left to me. Didnt get an F&F had to hand it over and then carry on for another 5 years??? Lets just say I would be a little bitter!! I would rather have a drink bought for me and carry on my long road to recovery instead! I am sure I would be a lot happier in my journey. Only my opinion of course.
