paying creditors direct ?

[lee.z]

I entered into an IVA 12months ago. I believe I was wrongly advised at the time. And due to debts I panicked and signed up. I was told no ADMIN charges would apply, but now they do! - The IVA company are trying to get me to remortgage my house to pay the debt. I feel I have been mis-sold the IVA and I'm currently no better off and still feeling the stress that I had before the IVA. Is it possible for me to leave the IVA and pay my Creditors direct?

[luluj]

you can fail your IVA and then consider a DMP or bankruptcy - were you not sent the R4 explanation sheet with all the differing options on it before agreeing to the IVA?

[abc]

Not sure why you think that you were wrongly advised?

Subject to the terms of your IVA and creditors wishes your Supervisor may have to petition for your bankruptcy if your IVA fails.

Why is the Supervisor trying to get you to remortgage? Is the property subject to the IVA - do you have to deal with the equity at year 4? Do you have sufficient equity to pay your creditors in full?

You cannot leave your IVA, the IVA will need to be failed which may lead to bankruptcy or not as discussed above.

[size5]

The impression I get from your post is that you were led to believe that there were no fees for an IVA and that you weren't aware that there had to be equity release. Is that correct?

If so, then that is an issue that you must address directly with your provider as soon as you can.

Regards.

[lee.z]

The impression I get from your post is that you were led to believe that there were no fees for an IVA and that you weren't aware that there had to be equity release. Is that correct?

If so, then that is an issue that you must address directly with your provider as soon as you can.

Regards.

[lee.z]

Yes, you are right.
The way it was put to me was "this is what you will pay each month and after 5 years you will be debt free" - not once was it said to me about admin fees or equity release in the property. Ok yes it proberley was in the small print but I was so stressed at the time with the debt, I took what they said to me at face value and trusted them.
With the fees they are adding on - that will mean im now paying back more than the original debt!!
I'm not sure who I can speak too to help!!!
Lee.

The impression I get from your post is that you were led to believe that there were no fees for an IVA and that you weren't aware that there had to be equity release. Is that correct?

If so, then that is an issue that you must address directly with your provider as soon as you can.

Regards.

[Lisa2009]

To be fair, every IP deserves to be paid for the work they put in.

Beware that once you start paying direct to your creditors again, you wont have the legal protection you have in an IVA and your creditors will be free to start adding on interest again. Meaning your debts will obviously grow and you will be paying them off for much much longer.

[Adam Davies]

Hi
You have miss understood as your IP has not made everything clear.
Your monthly payments will be the same regardless of the fees paid to your IP.
The equity relerase should have been clearly explained to you before you signed into your IVA.
What was your total unsecured debt leading into your IVA and how much are you paying per month.Finally how much equity do you have in your property ?
Regards

[MelanieGiles]

If your IP is a reputable operator, they will have sent you a letter of engagement detailing the basis of their charges which you would have been required to read, sign and return. The IP fees also form and integral part of your IVA proposal which you also would have been required to read, sign and return. I therefore am suprised that you feel that you did not understand that charges would be made, and it would be extremely naive to assume that a qualified professional would work for the next five years for nothing!