Is this IVA really an IVA?!

jorainbow

In July 2007 I was set up with an IVA with Payplan. I have no assets but was advised this was my best option. I have since found out that not one payment I have made has been sent to my creditors because one of them has failed to return a Proof of Debt Form in the last 20mths. What implications if any does this have on the agreement please? thanks Jo

MIVAA

Hi Jo,

No implications for you at all.

It is not unusual for creditors to find themselves waiting to receive payments from the IVA pot, and in extreme cases this could be years, but it has no bearing or reflection on you.

Your IVA committed you to paying your contributions over a fixed schedule, so all you need to do is keep your IVA payments on schedule and leave the IP to worry about the creditors.

Payplan charge your creditors for supervising your IVA, and this is just part of the supervision process.

If your creditors can't be bothered to prove their claim in your IVA then they'll be the ones to suffer as a result, not you.

I hope this helps.

MIVAA

jorainbow

Thanks - I am at the moment waiting for a creditors meeting to review my payments from 205 to 100 per mth (9p in the pound) due to change in circs though they want to extend my arrangement which having found out I am paying nothing to my creditors and Payplan are nicely gathering interest on the amount sat in their bank I am not happy about. They have advised if I refuse the extension the request will be refused. Would prefer to pay my creditors the £100 direct and leave this lot out of the picture.

jorainbow

Had a thought last night! The creditor who isnt sending the form in is one I owe the tiniest of amounts to so why are they not sending money to the other two? Please can someone explain this to me!!??! Big thanks Jo

jorainbow

jorainbow wrote: »

Had a thought last night! The creditor who isnt sending the form in is one I owe the tiniest of amounts to so why are they not sending money to the other two? Please can someone explain this to me!!??! Big thanks Jo

I would be really grateful of some advice please! Why are they not paying my other creditors. it matters to me that the money I pay is sat in their bank and not being paid as my IVA states.

MIVAA

Hi Jo,

From the information you have given so far it's difficult to be able to explain definitively what's happening with the IVA funds in your particular case.

What I can tell you is that it is not unusual for the creditors to only receive payments from the IP according to a previously agreed payment schedule.

This can vary depending on various things, but sometimes payments will be several months apart and until quite recently, but not so much nowadays, maybe as long as 12 months apart!!

I think the thing to bear in mind here is, that your IVA is based on you making payments according to your repayment schedule laid out in your IVA proposal. If you keep to that schedule everything else should be OK, as you have done what was asked of you, and that which you agreed to do.

Once your IVA payments have been made, the truth of the matter is the money you paid into the IVA is no longer your money, and therefore, you should try not to let it concern you that the creditors have another arrangement with the IP which lay-outs what happens to the money, and when they actually receive their share.

I understand why this might annoy you, because you are trying to be seen to be repaying your debts to your creditors as you understood you should, but they will already know that you are on schedule - for if you weren't they would have been informed about it by your IP.

I hope this goes some way to help you resolve the matter for you.

MIVAA

RAS

MIVAA is an experience IVA adviser, as per his/her profile.

jorainbow

thanks both - I am currently not making any payments to the IVA as i cannot afford the amount I initially agreed to due to a change in circumstances which Payplan are aware of - I am waiting for the outcome of this meeting but I am not willing to extend the terms of the agreement so will have to wait and see what happens.