IVA Arrears

Akrite

Hi,

Ive recently been struggling with my IVA I had spoken to my IVA company (Kingsgate) & agreed to make a down payment for a few months being told at the time that i had the option to either pay the arrears back at then end of the IVA so it would be like 2months extra payments at the end or pay it back gradually when i can over the months. The best option for me was to just pay it back at the end of the IVA. Now i am being told by somebody else at the company because the person i was dealing with has now left the company that if i was to pay it back at the end of the IVA they would expect me to pay for an extra 6 months. Is this correct as this seems very strange?

Thanks

Scott

Charco_2

No, this is not correct.

You should ask if the six months payments go entirely towards your creditors or if they go towards extra fees.

Akrite

Thanks for that i will ask that. Is there anywhere i could read what the procedures are for IVA Arrears & how it should be handled?

Thanks

Scott

Charco_2

The two suggestions that were given to you originally are quite standard but it strikes me that Kingsgate are simply taking advantage of the fact that you'll be going into a 6th year and so are attempting to add on an extra year's supervision fees... I could be wrong!

In this case you would be far better to see if a friend could lend you the difference (the two months arrears) and you pay it in to your IVA before your 60 months are up. You can then pay your friend back over the next two months after your IVA and take him out for a booze up in the third month! (after all you should still have a surplus)