IVA Total payment ?

Legacy_user · 4 October 2008 at 9:02PM

Hi everyone,

As some people know I am progressing through starting an IVA. If I understand correctly its over 5 years (So why do you see 60 months mentioned so often?) However when I work out how much I owe v how much I will pay back over 5 years, there is a difference of approx £1500. Is it me or is this a little OTT.

So, as we all know, the IVA "preparation and maintainance" costs are massive. So if I came into money or my property increased in value, would I be expected to pay more than the actual outstanding amount, ie pay for the IVA running costs ?

Some people would ask why an IVA. TBH the reason is, there is a definate finish date, and also the interest is stopped, which is a major factor.

Just I wouldn't be prepared to re mortgage my house to give these leeches 1.5K

Dorothy56 · 4 October 2008 at 9:27PM

Hi

There are 60 months in 5 years, which is why you see it so often. It's the same with an IPA - 36 months, in other words 3 years.

I would check with the IVA company to see what your balance is. Sorry I don't know more

Dorothy

Thefishdude_2 · 4 October 2008 at 10:17PM

yeah from what i read iva running costs can be high that is why you they set a minimum level of debt. basically the more you owe to start with the more benefial it is to do an iva.......if you can call having alarge debt beneficial lol hope yuou get what i ment.

Rylynn · 4 October 2008 at 11:38PM

Okay most people in IVAs do not ever pay back the total amount owed to the creditors, anyone thinking they do are in the most wrong.

Had I not failed my IVA due to ill health I would have repaid (with no increases in monthly figure) just under 21k, I owed £58k.

If you are paying it all back in 60 months why on earth are you not in a DMP. Surely that would have been better, although I could be totally off the wall and wrong here about that.

I paid no up front fees for my IVA, I took enough advice to make sure I used a company who did not want them, did not have them anyway. However I was missold my IVA in many peoples opinions, I had no assets no house, nothing to lose, only my car, which since I have learnt as needed for work would have been exempt in BR, which the IVA people never told me, in fact was the tool they used to convince me IVA was the best.

No one can forsee the future we do not have crystal balls, I could not have seen the illness that would strike me down meaning I was not in work there for unable to pay the IVA which took 18 months for them to then fail, having paid themselves 4K and my creditors got just £1300!

So if you think they only get 1500 think again, they only pay a percent in the pound to the creditors, and they are probably gonna take £4k out of it in fees, they are in ONE fine business in making money out of debt.

Having said all of that, they are the right route for some people but not all people and I think the people going into them should be told how much they make out of it.

AND yes you will pay more if you get a wage increase, you cannot have any windfall of over £500 without telling them, for me it is no different for someone like me than BR is, so are you sure BR would not be for you, or a DMP.

Also the things allowed in IVA are very stringent, I phoned once to say look everything has gone up.. bills, food, they said TOUGH, you pay or it fails, so I then had to cut every corner I could ie we ate less, we had less heat. You get no allowances for holidays, and some of the levels they allow are far less than allowed in BR.

I hope that helps, having been there and back I know I would have been better with BR, but as I said I do not own my own home, but many on here do and have and still found BR the answer and not IVA.

RL

IVA Total payment ?

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