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Posted: Mon Jun 27, 2016 6:20 am
by Paul.24
Hi,I have been paying an iva for 4 years now and have got some money coming from the sale of my and my ex wife's house. What I wanted to know was the iva people want a final settlement of the total amount owed plus interest which is 12000 pounds on top , I don't think this is right as they never mentioned this would be the case before. Do you think its correct or are they pulling a fast one ,also is there only the one option or is it possible to contact the creditors directly with a percentage offer. Thanks.
Posted: Mon Jun 27, 2016 8:45 am
by Shining
Hi and welcome. Within an IVA you always owe the full amount of the original debt, added to this is possible statutory interest and IP Fees.
Once all this is paid you will be debt free. Therefore, your IP is more than likely correct.
Your IVA has been paid for 4 years now and for you to contact creditors this would need to fail and you would then no longer be protected by this and find that interest and charges will be added to the individual debts etc.,
Posted: Mon Jun 27, 2016 9:27 am
by Lisa Thomas
There are two different types of settlement that people understandable get a bit confused with.
1. If you receive a windfall or have an assets paid into your estate then all of the money would have to be paid into your IVA unless and until everything had been settled in full - 100% of the debt plus statutory interest (8% per annum) plus all the IVA costs.
2. If however you wished to settle the IVA early using third party funds then you can put forward a Full and Final settlement offer would be based on the number of payments you had left.
In your case it wounds like this asset is payable into your IVA and unless there is a surplus after paying off the total debt, interest and costs then you will not receive anything back.
Check your IVA terms - everything will be in there, they are not 'pulling a fast one' they are adhering to the terms of the contract you signed.
You could ask creditors if they would waive their right to the statutory interest (on the assumption it applies as part of your standard terms) but that still might not create a big enough debt for you to receive money back.
How much was your total debt at the start and how much have you paid into the IVA?