IVA -settling early
Hi there
I was wondering if I'd be able to get some advice regarding ending my IVA early. I am currently coming up to the end of my third year into an IVA (just gone through my third review).
My original debts were around £21,000 and I have no assets. My payments started at £197.50 per month but then I received a large pay increase after changing jobs and my payments were put up to £411 a month after the first year. I had a very small increase the year after but cost of living went up so no changes were made to the payments after the second year. As I said before I have just completed my review for the third time and although I have only had a small salary increase of around £40 per month and my expenses have risen by around the same amount they have increased my payments to £533 per month! I queried this as I didn't understand how when my income and expenditure has barely changed they can warrant charging me so much more per month. They made some excuses about how it was done incorrectly last year and I should have been paying more for the past year.
Anyway, I'm very unhappy that I'm having to find an extra £120 per month when I have no extra income and am basically wanting to get out of the IVA.
A friend has offered me an interest free loan of up to £6000 to settle early so I was wondering first of all, how much they would be likely to accept to settle (I have paid around £12,000 already over the past 3 years) and also what happens while you're waiting to see if your settlement offer has been accepted? Do you carry on making the agreed payments and if the offer isn't accepted by your creditors does this have any effect on the rest of your IVA?
Sorry for the ramble but any help would be greatly appreciated.
I was wondering if I'd be able to get some advice regarding ending my IVA early. I am currently coming up to the end of my third year into an IVA (just gone through my third review).
My original debts were around £21,000 and I have no assets. My payments started at £197.50 per month but then I received a large pay increase after changing jobs and my payments were put up to £411 a month after the first year. I had a very small increase the year after but cost of living went up so no changes were made to the payments after the second year. As I said before I have just completed my review for the third time and although I have only had a small salary increase of around £40 per month and my expenses have risen by around the same amount they have increased my payments to £533 per month! I queried this as I didn't understand how when my income and expenditure has barely changed they can warrant charging me so much more per month. They made some excuses about how it was done incorrectly last year and I should have been paying more for the past year.
Anyway, I'm very unhappy that I'm having to find an extra £120 per month when I have no extra income and am basically wanting to get out of the IVA.
A friend has offered me an interest free loan of up to £6000 to settle early so I was wondering first of all, how much they would be likely to accept to settle (I have paid around £12,000 already over the past 3 years) and also what happens while you're waiting to see if your settlement offer has been accepted? Do you carry on making the agreed payments and if the offer isn't accepted by your creditors does this have any effect on the rest of your IVA?
Sorry for the ramble but any help would be greatly appreciated.
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Comments
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Have you checked the I & E form that you submitted for the review to see what available surplus was left for creditors? If that amounted to £533 then that will be the answer. If you put expenses forward that would be unacceptable to creditors then usually your IP would send it back to you asking you to amend it accordingly. If you offer to settle early then I think it opens up another review of your entire situation and creditors will try and get as much as they can.
You may be able to get your payments reduced if they have been incorrectly calculated. If your true I & E shows a surplus income less than what you are paying then I think you can insist on variation meeting. Your IP's own email address can be found at the Insolvency Service http://www.insolvency-service.co.uk/newipsearch.htm , as it may be their staff that are fobbing you off with excuses.
If you can't get an answer here try posting at www.iva.co.uk/forum for expert advice.0 -
from what i have read on the forums, some people who have settled early have bad experiences as years of payments are swallowed by the IVA company, unless you hear otherwise maybe it best to stay in IVA till it finished and if struggling use your friends generous offer of an interest free loan to make up the difference each month???
if you already paid 3 years, then prob only 2 or 3 years left - half way there!
and i def would check the new arrangement, i got my annual review in april and dreadin it incase they increase payments
we live in hope! lol 0
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