My husband is in IVA 2 years in. The original debt was £27,000 paying £350 a month. The company has claimed £20,000 in PPI and no monies have come off outstanding debt and all monies they have claimed as windfall.They have as fair as I'm aware paid no monies to creditors as they said first two years pays them! Is this right that no money comes off the debt? What can we do?
I'm no expert, but this sounds ridiculous to me.
It is bad enough handing over £20,000 without being told that none of this will come off the debt.
It sounds like a claim company was used, so 30% will go to them, and I know that your IP will get a %age of it too.
Hopefuly there will be an expert around soon to give you a bit more advice.
About 1/3rd of the 20k will go in fees to the claims company. As far as I am aware the IP doesn't get a cut? So you would still have a fair amout to pay into the IVA as you are still liable for the full debt plus any interest. Was the full debt 27k or was this the figure that was calculated by your IP?
Last Payment made 04/12/14. Completion Certificate 25/7/15. IVA company GT. No Issues
In an IVA, from day one until the end you owe the full original debt plus fees, and possible statutory interest. Once this figure is achieved the IVA will close. The PPI will go towards this total, after the claims company have had their cut.
The frequency of dividend distribution is as agreed with the creditors themselves and should be detailed in the proposal or Chairman's Report.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
