Can a creditor add on interest

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bron

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Post by bron » Mon May 19, 2008 7:12 am
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Can a creditor who has recovered a debt from another company then add on interest. As I have received another letter from my IVA company stating that the debt has risen from £26K to £31.5K because of this.
Thank you
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angela18

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Post by angela18 » Mon May 19, 2008 7:28 am
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I thought an IVA was protected from interest etc. I'm sure an expert will give you correct answers though
Ang.. 13 payments in.. WOW, thats over 20% paid!! http://angela18.blogs.iva.co.uk/ well here we go

if you wish for a rainbow... then you have to put up with the rain xx
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cfnc

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Post by cfnc » Mon May 19, 2008 7:32 am
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I will be interested in the expert reply too.

Kirsty
Kirsty
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MelanieGiles

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Post by MelanieGiles » Mon May 19, 2008 8:43 am
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Interest can be charged during an IVA, if the proposal provides for it contractually or at the statutory rate of 8%, but this is only applied usually when you are going to repay creditors in full - for instance from a windfall. If this is not the case in your IVA, then interest cannot be charged from the date of the creditors meeting. It sounds to me as if the original claim was not verified prior to the proposals being presented to creditors - which is always pretty dangerous.
Regards, Melanie Giles, Insolvency Practitioner
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