IVA Company says must pay another year!!!

chalkiex

Hi,

y friend entered into an IVA 5 years ago this June and has been paying 50% of her salary for that time and just received a letter from the IVA company stating that she must now pay another year when the original agreement stated the IA would last only 5 years.

Does anyone know what the legislation is around this kind of thing, what sort of dialogue needs to be started so she can request a true certified copy of the original agreement she signed and what are the ramifications if they can't produce it?

Thanks in advance.
Steve.

Gimpsdad

There are too many imponderables in there to give you a definitive answer, the best thing for her to do is to call her IP and clarify why this should be so. There are a number of reasons why this might have arisen, so speculation at this point would be fruitless.

FoggyBrain_2

Hi Steve. Your friend should have been given a copy of the proposal and chairman's report at the beginning of her IVA. Has she missed any payments during the course of the IVA? Does she own a property ?

The only way to get the true picture is for her to ask for an explanation from her IP.

chalkiex

Thanks folks - I shall pass your commentary on to her.

I think though the best thing she can do is a SAR first and actually see what she signed up to...

Cheers.
Steve.

angel_rainbow

Is this extra year because she was unable to remortgage? Many have had an extra year tacked on.
She needs to read her chairman's report (I kept mine in a safe!) and ring the IP.

milliemonster

She doesn't need a SAR as she will have had annual statements from her IVA company to see what has been paid and the distribution of funds to her creditors and if she was on track to meet what her proposal set out to achieve whether that was a minimum dividend or minimum amount.

The advice above is correct, she needs to speak to her IP to clarify the reason why she needs to extend, an IVA is normally detailed as a minimum of 5 years with a clause to extend if payments are missed,m reduced for any reason or if equity cannot be realised as an example

Savingmonkey_2

When reviewing my IVA on the turn of the 4th year i found out that apparently the IVA company could request 6 months continued payments after the end of the 5 year IVA, Apparently if at the end of the 5 years it was believed that you would have no problem continuing making regular payments they were with in their right to bring that into action.

I wasnt aware of that when i signed the IVA along with another load of terms which so how were "over looked".

basically if you could afford it they would request it.

Luckily for me i settled a year early ( a couple of weeks ago ) because a friend paid a lump sum for me as i wouldnt be able to afford the payments ive been making for the past 4 years, With the option given to the creditors that they can either accept the lump sum or maybe have to renegotiate a lower monthly payment for the last year they gratefully accepted.