www.iva.co.uk

Hi Everyone,
This is my first post so please bear with me, I got my IVA approved on the 20th July and was very surprised how striaght forward it was [:)] I had a phone call from the accounts department at the IVA company Today just introducing themselves and to say they will be dealing with my payments etc etc etc..... There were just a couple of things that surprised me a bit as they were not explained to me at the begining.

1. Any overtime I earn in a month over my basic salary I have to ring the accounts department and pay half of it into the iva pot as it were. So if I earn £100 overtime I give £50, not to bad. If I earn £1000 overtime I need to pay £500 etc, so in thery I could end up paying more out than before entering the IVA. Is this correct?

2. I then asked if I managed to get a lump sum say in 3 years time could I put an offer to my creditors with a view to ending the iva early....No was the answer I got. Is this correct?

I just need to clarify as this guy I was speaking to was not an IP.

Thanks in advance

Mark

You will never end up paying more than your original debt plus fees. If you end up paying extra into the pot you may find the IVA can be concluded early,but not until the whole amount of debt is repaid(100p/£),and fees.

As to putting forward an early settlement to end the IVA yes you can,the person you spoke to on the phone doesnt know what they are talking about.

What company is it you used? Its a little concerning that it was only after you had signed things that they mentioned the overtime ruling.

Paul

Hi there and welcome to the forum

I am rather suprised that things like overtime were not discussed with you by your IP at the time you met/spoke with them. Did you actually speak to the IP in person to go through the proposal documents to ensure that everything was accurate and understood? The answer to your question does lie within the terms of the IVA proposal - which may have been amended by creditors at the meeting - but again creditor modifications should have been carefully explained to you.

You can definately offer a lump sum settlement to creditors whenever your like - so I am also suprised at the advice you were given in the chat today. Which firm are you with?

Thanks for the quick replies Both, I am with Blair Endersby. My proposal was discussed with my IP but cannot recall the 50% of all overtime being mentioned.

I really want to get this right as I do not want any nasty surprises in a years time when I have my first review.

Hi Mark - you should have received a copy of the proposal. Any mention of the overtime would be in there - if its not, it could be that it was a modification that the creditors requested before accepting the IVA. If this is the case, you should have received a call asking for your agreement to this before the IVA was agreed.

Remember you will not pay back more than you owe as interest etc has been stopped once the IVA is entered into.

Lots of people end an IVA early with a full and final settlement, so you were definitely given the wrong advice there.

Make sure you're 100% happy before you agree to the IVA.

your iva will have a windfall clause probably £500+ that you have to declare to your ip for your creditors, so technicaly the advice could be accurate,as full and final offers have to come from a third party

If it doesn't say anything in your proposal, then check your chairmans report.

As Swans_Girl says, it may have been a modification at your creditors meeting, but this should have been discussed with you at the time.

Ring your IP again and ask for absolute clarification of what you are required to do.