Hi,
just a quick question if anyone can help,my iva was accepted June 2006,Obviously with the equity clause we are now in our 6th year,finish june 2012.
My question is we started paying our monthly payments Dec 2005 meaning we paid 6 monthly payments before our iva was accepted.
Would these 6 additional payments count towards my iva (Therefore i should insist to my ip that my iva should finish 6 months earlier) or should i just write these 6 payments off.
Any payments made prior to your IVA commencing should be included in payment to your IP and your creditors.
Unsual to hear of 6 months payments ahead of the IVA being approved.....if it were me I would be challenging and making sure they were included in the dividends to creditors or at least paying off the IP fees.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
Why on earth would you have paid these payments in advance, and how were they disclosed within your IVA proposal? Six months to be paying prior to acceptance is indeed unusual.
Thanks for the speedy replies,we were told by our ip that because we cancelled direct debits etc for creditors that we had the money to start paying into our iva.
I remember it very distintively as they insisted on visiting us at our house & insisted on the first monthly payment of £361 in dec 2005 (by cheque)which we carried on paying until our iva was accepted in June 2006 (after iva was accepted our mthly payments went up to £500 because a loan with our mortgage company was added) ,Thats on top of the £1000 fee we had to pay to the debt counsellors for pointing us in the direction of Synergi whom we have been with until they were merged recently.
Firstly I cannot see why it took them so long to prepare your proposals, and secondly if this cash was held by them at the time your IVA was eventually presented then it should have been disclosed as "Cash in Hand" as an asset and offered up to creditors plus 60 further monthly payments. But as with all case specific queries, the answer will firmly lie within the proposal.
Your IP firm have now been taken over by ClearDebt, so perhaps Size 5 will pick up this post and be able to assist you off-line.
First I would ask your IP for a statement of account and see if it shows where these payments currently reside, then take it from there, according to what the figures show.
Edit: Depending upon the state of the accounting by the original firm when ClearDebt took on the case, they might not, now, be even aware that this "advance arrangment" existed!
Last edited by Foggy on Wed Sep 07, 2011 8:53 pm, edited 1 time in total.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Hopefully Size5 will pick up on this tomorrow. If not then I'll email him and draw his attention to it.
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,
Just to clarify things,i have dug out paperwork to clarify this situation.All written underneath is taken word for word from my ip as written in the letters.
Letter 1 dated 15 november 2005(7 months before our iva was accepted)."The sooner you return the letter & two cheques for £393 each made payable to chris j stirland for your 1st & 2nd payments,the sooner we can start to help you.A standing order form will be sent to you later to enable you to make your remaining payments".
Letter 2 dated 11th february 2006."We enclose a standing order mandate for the sum of £569 representing your 3rd payment into the arrangement.The standing order will commence in february 2006".
Our iva was accepted June 21st 2006
Finally my 1st year report dated 13 july 2007 (one year after we were accepted)
Under the terms of the proposal the debtors were to make voluntary contributions of £500 per mth from future earnings.As at 21 june 2007 the debtors have paid £8,304 into the arrangement,which exceeds expectations by £2,304.This has been achieved by the debtors making additional payments prior to entering into the arrangement.
Any advice greatly appreciated
Last edited by kieser on Thu Sep 08, 2011 4:57 pm, edited 1 time in total.
I've sent Size5 an email so I hope he can pick up on 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
I did indeed miss this one, so thank you to Jan for drawing my attention to this. Kieser, I cannot identify you from your forum identity of course, so if you would like to contact me offline directly with a few more details then I can look into this for you. My details are in the experts section and you can either e mail me direct or give me a buzz.
Regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
From what you have said, it sounds as though the first 2 payments you made were an instruction fee. If that was the case then these would not have been included as part of your IVA payments. After the four additional payments you made seem to have been included into the IVA itself. Whether or not these count towards your contractual 60 months will be based on the terms of the agreement.
Hi,James,thanks for your reply,i may be reading this incorrect but it states that these first two payments were to be my first and second payments into the iva,not a fee.
Kallis,thanks for drawing this to the attention of size 5
Hope you can get this sorted kieser - let us know what happens.
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
The reason I suspect that the first two payments were a fee is that in your first year report, yo have said that it stated that you had made an overpayment of £2304. This is there or there about 4 payments of £569 as per your origional SO mandate. If your first 2 payments had been included this overpayment total would have been £3090.... Hope you can sort it or at least get a clear answer to how many months you have left.
