I could really do some help and advice as I will panic all weekend otherwise.
Have received a letter today from my IVA supervisors saying that I have defaulted on my IVA, i am just entering the Third year and all has seemed pretty smooth so far, the letter today stated that one debt in particular had raised its expected dividend by £3400 and this resulted in an 11% rise in expected monies.
the original figure owed was £32651, this has now shot up to over £36000, I pay £343 per month, and they have indicated I will either have to increase my monthly payments or extend my IVA 6 months( something I am reluctant to do as I am in to the final couple of years)
Would anyone know how much extra I would have to pay, have called my supervisor but they will work out Monday and let me know, just dont want a bad weekend worrying about it, is the maths as simple as dividing extra payment req £3400 by 24 remaining months, which is an extra £155 per month to pay or is it worked out differently,
The letter mentions 35p in the £ and increase of 11p in the £,
Afraid it is all double dutch to me.
Can anyone put my mind at rest
I find this very odd! The dividend was sorted at the creditor meeting, and I would not have thought that any creditor could suddenly raise the dividend.
I hope you manage to get this sorted.
Who is your IP?
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
Thanks for reply, my supervisor was Unity now Tenon, looking back at previous paperwork they mentioned that on the third anniversary my contribution would have to increase, just concerned that it would increase to a level i cannot afford or having to extend the months again, which would be quite disheartening.
However, you do need to speak to your IP about this. No increase should be unaffordable. You may find that you have to extend your IVA, and whilst that would be a pain, would it be so bad if it meant your IVA could complete with no other problems?
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
It seems to me that a claim has been recieved at a much higher sum than was originally anticipated and this is therefore affecting your overall dividend. Was the dividend ever guaranteed? And I think it would be a good idea for you to ask your IP for details of why they feel the IVA will need to be extended.
Hi Melanie, thanks for reply, Max Recovery on behalf of Abbey National originally asked for £9k but have now upped to £12.5, the letter from my Ip states that due to an 11% increase I have now defaulted, this can either be put right by increasing my monthly contributions( pretty worried as I dont have much spare cash) or by extended iva by 6 months( again disheartening as i thought I had just 2 years left, but could increase)
Well first of all why don't you get your IP to provide you with an explanation of why the claim has increased from £9k to £12.5k. Your IP should have checked that the creditor figures were correct before the IVA proposals were presented, so they probably should share some of the blame for what has happened.
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
