Message for Cleardebt

[rachelwilson_uk]

Hi everyone, Really really need some advice.

I am 10 months into my IVA with cleardebt and I have constantly being trying to call them for the past week for this advice but they never answer the phone.

I have applied for a new job which if I get offered, will mean a pay increase of anywhere between £3,000- £11,000 a year. I have been on the cleardebt FAQs website and it says that they can take anything upto 50% of my increase which is absolutely fine but as this means that my payments will double, will this reduce the term of my IVA?

My debts were reduced from £24k to £16k with my IVA and im paying around £300 a month at the moment, if my IVA payment increases to £600 with my pay rise, will my IVA term be reduced to 2 years remaining instead of 4 years remaining? surely they cant take the £600 and continue for 4 years as this would mean i'd pay back nearly £29k which is more than the debt before the IVA to which ive already been paying for nearly a year but my terms and conditions do not say anything about reducing the length of an IVA.

Im soooooo confused [:(]

[kallis3]

Hi and welcome,

We do have a representative from Cleardebt who posts on here so hopefully he will pick up on this.

Unfortunately you will always owe 100% of your debts until the IVA is completed. Any extra you pay across will increase the dividend to the creditors.

However, you will never pay back more than 100p in the pound plus fees so if you can achieve that by paying extra across then your IVA will conclude earlier.

[rachelwilson_uk]

Hi thanks for the speedy reply, its much appreciated.

Can I just clarify the situation, I had £8k written off with my IVA. sooo, this payrise I might be getting would go to my creditors untill this £8k has been paid off, then after that, the extra amount would then convert to coming off my IVA amount instead?

Sorry for asking silly questions, it would be a hell of alot easier if cleardebt just answered the phone or at least called back when you leave a message.

[Foggy]

If, at the end of the day you paid back £29k, that would sound about right to cover all of the original debt and the IP's fees. So, you will have paid 100 p in the pound, which is something to be proud of. You will, of course, also have gained during the IVA from not having punitive interest charges added every month.

[kallis3]

I've changed the title so that Size5 can pick up on this hopefully.

[rachelwilson_uk]

Thanks for all the replies. Things are starting to become clearer. Trying to find ways of reducing the term of my IVA but I dont think that will happen if none of the extra comes off the actual IVA itself.

Foggy, your absolutely right that 29k with IP fees etc will be about right but what about the £3k I have already paid off my IVA this year? will that be deducted from the amount I owe?

[Foggy]

If you hit the full amount of debt, plus fees before the predicted end of the IVA term, it will conclude at that point.

[rachelwilson_uk]

Brill, thats smashing. Thank you soo much for your time. I just need to make sure I get the job now hehe [:)]

[Foggy]

Best of Luck :0)

[MelanieGiles]

Your debts are only written off once the IVA has completed and not at the start. The spirit of an IVA is paying as much as you can over the term of the IVA, but within the rules set by your specific proposal. The answer to your questions lies firmly in the scripting of the proposal and the chairman's report of the meeting of your creditors. Seems odd that Cleardebt are not answering your calls - but hopefully Mike will pick up on this and attempt to contact you directly.

[Adam Davies]

Hi
It is an important point that Mel makes, the original debt is owed throughout the IVA, less dividends paid out by the insolvency practitioner. It is only when the IVA is concluded that any unpaid debt is written off
Regards

[size5]

Thank you Jan for drawing my attention to this.

I will liaise with supervisory to get to the root of any problems you may have had, and also to make sure that this is addressed for you as soon as possible.

Regards.

[sponge]

If you do get offered the job have a think to what's importent to you and how your prospective employer maybe be able to help. For example any benifits they maybe able to offer in exchange for less money. ie health care or pension contribution and there are others. Some of these benifits maybe taxable therfore your bottom line take home maybe less than you hoped, but the style in which you live within the IVA maybe improved and the money you do have maybe more effective to you. I think that's carefully said...

[kallis3]

Hope Mike has managed to get something sorted for yoru Rachel.