www.iva.co.uk

hi, we have just received our end of 2nd yr annual review and our dividend is 21p in the £. It is expected the final dividend will be 55p in the £ (originally expected to be 39p in the £).
Can you advise if end dividend is achieved-should we be ok envisage to finish at the end of the 60months agreement or could this be extended?
I only ask because I am reading (on here) people having theirs extended by 6-12 months?
I would just like to see light at the end of the tunnel-and have a date to aim for as originally planned.

Hi,

Unless you have an equity release clause then your payments should cease at the end of 60 months if your dividend has been met.

It will take a few months to sort out the final admin and distribution of funds but then you'll get your letter of completion through.

I would have thought it was how the wording is on your proposal?

Some people seem to have their proposal stating guarenteed dividend, but then in ours we have the wording " estimated" which i feel is a much better option.

Also like Niobe has said most people would have the equity release clause in their proposal.

Do you have that in yours?

We have it in ours, but rightly or wrongly i think that we will not be able to release any equity in 4-5 years time so will be making another years payments.

Its really important to see exactly what is stated in your paper work!!!!

Hope that helps!

Baldy

Thanks - will double check proposal

Your proposal and subsequent chairmanship report from your creditors meeting should provide you with the answers if not give them a call tomorrow and ask the question.

Here's a question regarding final dividend should you be fortunate to be able to pay back 100p to all creditors either through windfall, inheritance or PPI claims and after all fees are paid as well as creditors, if there is a surplus who gets that or does that go towards the 8% statutory interest?

There would not be a surplus, as your payments would cease once the 100p level had been achieved.

So what would happen if you had made your last payment, specifically to the PPI claims coming in etc?

Not sure I understand the question Orchid?

The amount raised from the PPI claim would be taken into account together with payments made to date to calculate when 100p/£ would be reached (inc fees) and if this was to be reached before the expected term of the IVA the payments would stop and the IVA would terminate early.

Ok, as many folks have been asked to claim back PPI etc, seemly at the moment when they are very near to completing. What happens if they complete, then the PPI monies come in and this uplifts the dividend to a 100p in the pound for all creditors, after everything has been paid, ie, dividends, fees, vat if any and there is surplus because of the extra money having come in, what happens to that?