Completed IVA problem

globalsmh

I had an IVA approved in Dec 2007 and started paying the first of 60 monthly installments in Jan 2008,with the last payment being Jan 2013.The IVA has changed companies twice during it's course (which I've not been best pleased about but I believe this is quite a regular practice?) and has been managed OK until the current company took it over in July 2011.

Approx half way through the IVA I lost my job and found keeping up the payments (£250 per month) were difficult as it was nigh on impossible to get work paying anywhere near what I was earning previously.I approached the IVA company at the time and they agreed with creditors for a variation in payment to just under £100 per month from midway through 2010 to the current time.This has been agreed at each of the creditors meetings in Dec 2010 and 2011.

The problems are now I have contacted my IVA company to say I have payed my 60 installments as agreed and they have verbally told me this is all fine (they have even send me a letter stating this too) but now they have sent me the Annual Report from Dec 2012 which states I have to continue paying for the next 12 months at just under £100 per month still. They claim that at the variation meeting in Dec 2010 this was agreed but there is nowhere on the Annual Reports from Dec 2010 or Dec 2011 that states this is the case. I feel that the IVA company is just trying it on (not for the first time) to try and get more money than what the agreement stated.

Could do with some advice on this,thanks.

cheesedoffwithdebt

Unfortunately it may not have been spelled out to you enough when you reduced your monthly payments, but it's quite normal that if you do that, then the IVA continues for another 12 months yes. The IVA is not actually for a set period really- the 60 months is set at outset but any changes during the IVA can lead to an order for additional payments in order to get those changes agreed. It's also common practice that for homeowners, if there is additional equity in the house after the 60 months they can be asked to secure further borrowings on their home to end the IVA or if insufficient equity then the IVA continues for another 12 months.
As far as I can see ( after being in one for 3 years) an IVA is nothing more than a compromise with creditors to get as much paid back as possible.
It's not helpful though for you when you are not with the original IVA company and have probably lost contact with someone you know perhaps a little who can spell it all out to you.
I don't know if CAB would approve of me saying this but I'd be tempted to ask for a copy of the original IVA agreement, and a copy of the variation-then make an appointment with CAB and go through the documents face to face with someone who can explain it all.
There is someone on here who is a CAB debt adviser he may be able to throw more light on this?

globalsmh

Thanks for the reply.

I still have all the correspondence I have been sent during the course of the IVA including the original agreement. It states that if there is a change of circumstances and a variation report is required there MAY be an extension of the payments by 12 months.It was SUGGESTED at the variation meeting in 2010 that the payments be reduced and an extension of the IVA could be extended by 12 months but nowhere in the actual acceptance of the variation agreement does it state that the IVA WILL be extended by 12 months,it simply states that the reduction in monthly payments has been accepted.

globalsmh

Anyone else with any further advice?

I am very disappointed with the IVA company sending me a letter saying I had completed and then the very next day send me another letter saying I had to pay a further 12 months.

They have sent me the SUGGESTED variation document from 2010 (which states that the payments should be £50 with IVA extended for 12 months and not nearly £100!) despite the fact that the ACTUAL agreement were the payments were nearly £100 per month and no extension on the IVA.

The whole thing has been handled very badly since being transferred from previous IVA company.