www.iva.co.uk

I already have an IVA in place, however, at the initial creditors meeting the creditors accepted 48p in the pound. When the resettlement figures were received from the creditors the amount they are now being paid is 64p in the pound. Could you advise if this is common practice.

Hi and welcome.

Have your circumstances changed i.e payrise?
Have you been paying in 50% of any overtime?

If so, it just simply means that there is more in the pot so creditors are recieving a higher dividend.

I am not sure what you mean by "resettlement figures".

It is a common misconception that creditors accept a certain amount of pence in the pound at the initial creditors' meeting. What they actually accept is an obligation from you to pay a certain amount per month into the pot, and the dividend resulting from that is simply a forecast, although some creditors do insist that the forecast be achieved.

The net effect of this is that if creditors' claims come in lower than expected it simply means that the dividend will be higher.

Is it possible that your IP did not validate your creditor claims at the time your proposal was formulated and that the claims received were actually lower than those originally forcast hence producing a higher dividend for the other creditors to share from?

My % to my creditors have increased since the start of my IVA with out looking I am not sure by how much this is because I have had pay rises in the 3 years and have paid 50% of the rise and have paid £3000+ more that calculated.

Jan

Ah - I see. Your IP has increased your payments over the period of the IVA and you have been able to make additional payments from 50% uplifts. This is quite normal, is one of the stipulations of entering into an IVA, and must be a fantastic feeling knowing that your creditors are going to get paid back more than you originally thought.