So in my final year of my IVA i discovered that two of my creditors had not claimed the debts totalling £6k. Therefore I would not meet my 50p in the pound.
It was only because I decided to check I would complete on time was this ever revealed to me and that they had assumed all this time that I would make a f&f at the end of my IVA when a f&f was never part of my original agreement.
A solution was presented to me, I would clear my £1500 arrears and my normal payments to ensure I finish on time (date being dec 18th), at which point they would write to the two outstanding creditors giving them 30 days to make a claim. If they don't claim the £6k is written off and I am done.
30 days has now passed, no claim, great news I am done and dusted. Only to find out today that apparently I still haven't met my 50p in the pound and I need to make an extra £1000 payment.
What the heck!!!!!!! Apprently when they presented the above solution to me they made it clear I would need to pay this £1000. When I received this letter I specifically called up to make sure I understood exactly what would happen.. at no point was I ever told about this extra £1000 payment. Every month after this solution from June to Dec last year I would call up and check I was on track to finish properly. I was told yes, still no mention that I would still need to pay £1000.
My case manager said today its because in the second year of the IVA the student loan comany ( yes I was before then new rules so it had to be included)insisted to raise it to 50p. Fine can't argue it really they were adamant. Left me enough years to ensure my payments would meet the new pence in £ change.
My case manager said to me well you were always going to make a f&f as you had mentioned it several times and made enquiries. Yes 2 years ago I need make enquiries into what they thought would be acceptable amount as my parents had some money to give me. But unfortunately it was not enough and I was told it would be too low to put forward.
How can they assume just on the basis of making a few f&f enquiries year ago that I will definaltey make one now when it was never in a written agreement and let me continue to make payments that would mean I dont met my contribution.
I aksed my manager to try and plead to the SLC but she won't even try and call them. telling me they will say no. How does she know unless she asks.
Now they want to go back and listen to my calls to see if I am lying about them not explaining it to me correctly. I know for a fact in November I asked them that after my arrears are done and after my last payment is done there is nothing to pay except if those creditors claim.
Not good lilmisstrouble. Which company are you with if you don't mind me asking?
Are there any reasons that you can throw at them to ask the creditors to accept payments to date be used to conclude the IVA? If not, then you are probably stuck with it.
It's not ideal is it, but to come so far you may just have to pay to get shot of it once and for all.
I keep seeing this more and more on here and it really is disgusting. When they call you back before you pay anything extra over get it all in writing that there will be no additional money required and that this is the final amount to finalise the IVA. DO NOT ACCEPT A NAME ON THE PHONE!!! Get it all in writing and signed off and then and only then pay additional money otherwise they can call back and make another random claim that they've " just realised you owe" etc. if the paperwork they send out is wrong refuse to sign it and send it back to be completed properly I got told to just sign it and they'll amend it when they get it back. Of course I didn't but I bet some do and get royally shafted over it all
I know.. I am going ot have to call up again and speak to my case manager because in the letter they say £1500 but on the phone she said to me £1000 is what I owe, so which is it??
So I just spoke to my case manager and asked her about the differnce. So it transpires that once you make your final payment, they had to wait to hear from the oustanding creditors to make a claim before doing her usms and making sure everything has been paid in. Apparently she cannot do that prior to my last payment.
Sounds stupid to me but nothing I can do but pay the £1k.
Sounds like she has fobbed you off to me. Have you got a copy of your payments to date and what has been claimed minus fees? Work it out yourself and see whether you do owe this £1k to make the 50p in the pound return. They just want you to take their word for it but not putting anything in writing ask them to email you a breakdown of your contributions plus interest and the amount going back to the creditors after their fees are deducted and see what the penny in the pound return actually is after ALL payments are paid.
Also did your paperwork actually stipulate that 50p in the pound return has to be reached at the end of the 5 years because it would be in your initial contract if so. If it is there then it should stipulate if you are expected to "top up" the pot at the end of the IVA if there is a shortfall.
Thnaks, I will do that as I do not trust them anymore. I purposefully queried every month last year to ensure my the sitution I discovered in Jan about not completing on time did not occur after I finished and low and behold it has!
My case manager had to cheek to tell me that in one of my notes on the system it said that they had verbally informed me about the £1000 I had to pay afterwards which I dispute. I rang back after my initial call and the first thing I asked the guy who answered my call, can you read out what notes are written against my call this morning, he said that it was written that I was going to be submitting a complaint. No mention that my case manager said she had informed me I owed £1k - why would you not write such an important detail down in the notes. I never said I was putting in a complaint, I said I would if she did not speak to the SLC.
I do't understand how in my last call she can say that she couldn't tell me just after my last payment about how much I owed because she had to wait for creditors to get back to her, yet 6 months before they could write me a letter telling me that it was exactly £1500.
Maybe someone who is practitoner can shed some light.
Another IP won't be able to magic an answer because they are not in possession of all your payment history and the initial agreement made by the creditors. You need to look at your initial accepted terms and conditions carefully and then see what you are bound by and then if the clause is in place for a minimum 50p return check your contribution total and the amount they are due to get back and then you can see if they are accurate in their demands of you
Am I missing something here as I don't understand how this company works. My understanding of how an IVA works.
Your debts are added up at the start of the IVA and then your disposal income calculated along with any possible equity. This is the amount you are expected to have in your pot at the end of the term. Fees and expenses are then deducted and the remainder worked out as to give a pence in the pound dividend. If throughout the term of the IVA you are able to pay in more money, then this gives a better dividend to the creditors. The creditors then have to make their claims. If a creditor fails to claim, then his portion of the dividend is then shared amoungst the creditors that have claimed giving them a better dividend.
So how come you need to pay more if two creditors make a claim now. Their money should still be in the pot.
Do you own a property that you not able to release the equity on? Do you have a minimum dividend to achieve? These are the only two factors that I can see resulting in the need for extra payments, unless of course you are in arrears which you say you are not.
Lets hope an expert will be along to answer your post later.
When my IVA started in 2006 I had to meet 40p in the £. In Dec 2006 the Student loan company demanded it be raised to 50p in the £ and they are the majority party here. It was agreed, not much I could say as I was naive then, didn't know much until years later when I discovered this forum.
I have no assets etc.
Anyhow my payments were increased to account of the change. In Jan 2011 I decided I would check everything was on track to complete in time because if I wasn't at least I had a year to deal with it. It was then I found out I was not that I would not meet my dividend because they assumed I would make a f&f payment at the end, this was never part of the orig agreement they assumed this because I dared to ask about 2/3 time what a reasonable f&f would be as my parents had £5k to give me, but it wasn't enough so I did tell them the money will never be offered again.
So it took from Jan to June for them to actually address the situation. It transpires that 2 creditors had not claimed amounting to £6k which I needed to pay plus my arrears and normal payments. Their solution was pay your normal payments plus your arrears, we will write to the creditors who hadn't claimed after your last payment and if they claim then we will have to extend. They mentioned in this solution an amount of £1500 that had to be paid - when I called about this letter detailing the solution I specifically called because I did not want another situation to come up and it was explained to me that I need to just finish my reg payments plus my arrears and thats it.
Now today I am told i need to pay £1000 as dictated in the letter, but the letter says £1500. I queried this and they said well now you made all your payments and I worked it all out its £1000. I asked why it couldn't of been done in Dec, but was told it couldn't of been down. Yet they could say in a letter in june that it was £1500.
Now I am miffed because I just looked at the only annual review documentation I have ever received in 5 years, detailing a schedule of distributions to cred made on Feb 2011. Looking at my agreement they get dividends every year.
I dont know how they have got this so wrong and why this has been so difficult to calculate and sort out. Its a nightmare!
I think an expert needs to advise on this. I still don't understand how they haven't factored into this the dividends due to the two outstanding creditors. Even if they haven't payed them anything up to now, they should have kept their share in the pot... shouldn't they?????
Are you saying your IVA was initially agreed at 40p in the pound then later in the year they called a variation meeting and changed it to 50p? I didn't think a creditor could force you to do that if you have not missed payments and kept your side of the agreement. Also at that time they amended your payments accordingly to compensate for this change and yet still say you are under? I can't stress enough how important it is for you to email them and ask them to provide your contributions to date into the agreement, how much money you will have paid after your last payment into the agreement at your current monthly rate and how much return the creditors are getting back after supervisor fees in the pound.
It's all very well someone on the phone saying they have calculated this but you need to see it evidenced down in figures before you hand anything additional over. It's all about hard facts and the figures once sent should speak for themselves
All I know is my original says 40p but I got an amendment notice through telling me of an amendment to now 50p.
So I have now been through my bank statements going back to the start to end.
In my annual review letter dated Feb 2011 it states that £32,100 is claims submitted and £8,800 are claims creditors have not submitted.
Forget about the £8,800 claims not submitted as they haven't claimed and are only estimated figures.
Am I right in thinking that to achieve 50p in the pound it means from £32,106 I had to pay half of this back? Plus fees which are approx £7,600?
Because if so by my calculations that is 32106/2 = £16053 + fees = £23,600 roughly. I have to date made payments totalling £23230 so thats gives about £400 outstanding.
Hi. I believe your calculations are about right. However I am concerned about this amendment. My understanding is that they cannot make an amendment like this without your agreement. If you manage to increase your payments during the IVA, this serves to increase the dividend, but not to increase the minimum expected.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
