Hi everyone. I need some help urgently. Im 8months into my IVA. After contacting each one of my creditors it seems I owe 4k less than I thought, My Iva Company never told me about this and they have confirmed this is true, I now owe abt £11000. I pay 201 permonth for 5 yrs. Which means I pay more than I owe. IP knew this before the creditors meeting. What do I do? Also what does Natwest tix mean?
Is there any reason why you would be contacting your creditors while in an IVA?
You will never pay more than 100p in the pound plus fees whilst in an IVA.
Speak to your IP about this
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
If you take off the supervisors/IP fees from you total payments, then you will not quite pay off the full £11,000 to your creditors, they will still get less than the 100% of what you owe.
They are helping you to pay off your debts San - surely that is the idea of an IVA? The interest and charges are frozen and you will be debt free at the end.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Hi san - well I suppose you are saving on interest charges throughout the IVA. It would have taken a lot longer with interest being added.
If additional payments are made over the term of the IVA then once you repay 100% (& fees) then the IVA will end.
IVA's are all down to disposable income and if you can repay 100% then that's what happens.
Just think in 4 years you will be debt free.
The purpose of an IVA is to pay as much as possible back to your creditors within a given time, whilst still managing to live as normal a life as you can without the need for further debt. Your Income & Expenditure identifies your disposable income and this is what you pay back. Most people want to pay back as much as they can of what they have borrowed, after all it was spent by them.
I don't quite understand what you mean when you say it goes against the whole idea of going into an IVA.
I mean If they told me I owe 11k and not 15K I would have negotiated myself and im confident I could pay back much less, Especially now that my main creditor is going bust due to PPI CLAIMS.
The fact is MY IP went ahead without informing me that I owe 4K less.
Hi San- I believe it is down to us to know the amount of debt before we enter an IVA. An IP is the middle man. I don't know if you could have negotiated a lower repayment to be honest with you. Even if a company goes bust their debts will normally be sold on through the administrators.
I'm sure that the IVA will work in your favour without interest but if you really feel you have a grievance it is something you need to take up with your IP.
Those creditor balances should have been verified before the IVA was proposed and not afterwards. I can see why you feel let down, as a DMP might have been a better solution.
It is, however, your responsibility to provide accurate information to your IP - so why have those creditor balances now reduced as a matter of interest? Surely you knew how much you owed at the time the IVA was put forward?
You may well have been able to pay less if you negotiated yourself... but that would not have been fair, would it. If you borrowed/spent the money then you should pay back as much as you possible can.. that of course is only my opinion and may not be the opinion of others. As for the owing £4,000 less, what made you think you owed the £4,000 in the first place... surely you had statements indicating the outstanding balances.
I admit that was down to me being disorganised and also concentrating on my final yr exams. They reassured me that they would contact all my creditors and get an accurate sum of all creditors.
How did you give your IP the debt figures in the first place? In my case I had to provide current statements from each creditor (which was frightening when I totalled it up!). Were the figures your creditors provided incorrect (they would have been the same figures they'd have confirmed with the IP, so the error wouldn't have come to light at the time)?
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Tha'ts what I had to do foggy so I am a bit confused!! In fact they rang me as they had been right back on my bank statements and thought I may have forgotten to put down a creditor (car loan that ended when I got the motability one) - I then knew I was in safe hands with McCambridge Duffy as they were very thorough.
You can always fail the iva and try your luck. Not great advice but if you're only concerned with getting away with as much as possible then it's worth a try.
