No end in sight

[Johns]

Hi when we first got debt advice we were told that an iva will be best for us and we would be debt free in 60 months that was 60 months as £497.When the creditors meeting was held we were told they would only agree the iva at 72 months of £552.Recently we have had a variation meeting done due to a couple of payment breaks and it will now be 83 months but we have been paying £870 for 6 months now £775 so even though we have had payments breaks they would still get back more than the original amount so why do they keep extending it?
The funny thing is when you miss a payment they extend the arrangement but when your payments really increase they dont take a couple of months off and I know they will want 100% in the pound if possible but why advertise stating be debt free in 5 years because not many people can go 5 years without anything going wrong when you got cars and a house to run!
Sorry to vent but we have done 3 and half years and we still have 3 and a half to go and when we took this out we thought by now we would only have 18 months left but we have 43!

[kazzafunk]

Not everyone's IVA's do end at 5 years, I agree with you there. However 5 years is the 'normal' term.

It does seem unfair, however I think you need to consider the positives. You'll be debt free at the end of the term. I doubt if anyone who is struggling with credit cards and loans could hand on heart say that they would clear them in 5,6 or 7 years.

You should be proud of the fact that you realised there was a problem, and are dealing with it. You are also managing to pay more than originally anticipated.

Also, just because at present it looks like it will be 7 years, you may in the future be able to negotiate it down if there are changes in your circumstances.

If I were in your position I think I would keep an eye on what has been paid in against what was expected and once it exceeded that amount, if my health wasn't good or if there was a chance I could be made redundant or any other circs like that I would contact my IP and ask for a variation meeting to consider payments made to date be sufficient to bring the IVA to a close.

[Johns]

Hi kazzafunk
Thanks for your reply if I believed it would end at a set time I would not mind but it keeps going up and up what if I need payment breaks in the future it may end up being 86 then 90 when does it end.

[kazzafunk]

I understand how you feel. If does feel like it could run and run.

Hopefully one of the IP reps will be along in the morning and may be able to give a professional answer as I don't know if there is an absolute maximum length of time or whether you could ask for it to be concluded early etc.

Try and stay positive.

[Shining]

I think until 100% of the original is debt it won't conclude early.

83 months is a long time I do admit and maybe one of our experts will comment a little later. x

[Johns]

Hi
Thanks for the replys thats my worry as my total original debt was 56000 and they originally agreed 72 months at 552 which would be £39744 paid back and the rest would be written off I have already paid 24000 and nobody ever told me it would run and run until 100% would be repaid because if that were the case maybe another option would have been better and I was always told it would never extend by more than 3 months but it has already been extended by 11 months.You see it on the tv all the time you could be debt free in 5 years and the rest written off but for me that it is not the case.

[KAYKAY]

The excess will only be written off once you have completed. I think there is a limit as to how many times they can extend your IVA, but I am not 100% certain, so would wait for an expert to answer that one. We had to extend 12 months in lieu of equity, after that any outstanding balance was written off. Debt will be written off, once your payment breaks have been covered. Paying more than was originally agreed does not entitle anyone to pay for a shorter period of time, it would have been good for us if it had, as our payments started at £512 per month, but due to increased disposable income we were in the end paying £904 per month. It just means your creditors get a better dividend. I know it is hard, but just keep up the good work and you will get there in the end. Keep the faith. I will be a great feeling in the end and you should be proud of yourself for taking control.

[Johns]

Yeah we had to extend in lieu of equity too and we agreed to that at the very start so thats fine but I am concerned as I just dont want it to keep on getting longer and longer if I had been told in the beginning it could go on and on but i was told it would never extend past 3 months so far its 11 and they are currently doing another variation as we had 2 payment breaks recently,I think we will just have to refuse to sign it otherwise it will just keep getting longer.

[Johns]

Did anyone find out it there is a limit on which an iva can be extended?
Thanks

[KAYKAY]

The extension in lieu of equity is usually 12 months (sounds like you have done 11). You need to check what extension the payment breaks created, once these are paid back that should be the end of it. You sound like you are really close. Check your agreement thoroughly, as this should indicate what extension limits are applicable to your IVA. Everyone's IVA is different.