www.iva.co.uk

hi, i entered into an iva in nov 08,and have been paying 200 pounds every month, which totals to date at £4800.00, i contacted my iva today andthey said no monies have been distributed to my creditors, is this normal or am i being conned. regards richard

Usually the ealry monies are used to pay for the IP fees so it's not unfeasible that the first 2 years have only paid for these.

It actually took 4 years for any of my monies to be distributed to my creditors (pretty poor on the IP's part) so I wouldn't worry too much.

Which company are you with?

It is not unusual but newer proposals do allow for earlier payments. There is nothing for you to be concerned about as it is between your IP and your creditors.

On my credit report it shows little or nothing has been paid to my creditors even though my last payment was made in November! The impression i got was that the IP only distributes the money at the end, but i guess it varies from IP to IP.

Mines only just being distributed after a year in my IVA. When I got my statement it said I had only paid £400 to my creditors!! Call them up and ask for a breakdown of all monies paid

With older IVAs, the IP was allowed to collect their Nominee fee and costs before any dividends were paid to creditors. As a Nominee fee could be £1500 + VAT, you can see how it would take a number of months of payments before the creditors start receiving anything.

As Michael says, newer IVAs actually mandate that creditors should start being paid more quickly. However, as long as you maintain your payments regularly there will not be a problem and your creditors will receive the dividend that was agreed.

Creditors will never be paid until the nominee's fees have been cleared, but there should be no reason why a first distribution cannot be made by the end of the first year - unless they are still in the process of agreeing claims.

I think it was into the second year that mine started getting paid, however, as long as they receive the full dividend by the end of the term it's not something that bothers me.

Check your chairman's report from your initial creditors meeting - it should set out terms for fees and distribution of payments to creditors. Which firm are you with?