IVA support and discussion thread

Boorinho

Hello, all. I am very new here, so please go easy on me!

Can someone either answer my queries or direct me to relevant place in the forums to access answers myself?

I have an IVA. It has been in place since May 2010. Due to expire September 2015 (had a payment holiday due to emergency funds needed re car). Since it was started my payments have increased by more than 40% of the original figure, due in part to increased salary. The original agreement was at 49% which i take to mean 49p in the £. Clearly that has increased since and including a PPI claim payment I have now paid into the scheme more than I owed at the start of it. If you take fees off, however, understandably there is still a significant portion of the debt left.

I have a few questions:

I have recently got married. The arrangement was amended when i moved in with my partner to accommodate that she would effectively conribute to the household expenses by way of a lump sum, whilst we were not married. No joint review was done, on advice from my IP/debt management company. We are not joined into any financial arrangement other than the rent on our house. Should I advise my IP of the change in personal circumstances and if I do are they likely to take everything into account by way of her income, reduced individual burden for household expenditure etc? I have a view that I have always been liable for the bills including the rent and as such they should be included in full against my income.

Can I be expected to pay more into the IVA than the original debt figure that was agreed by my creditors? I ask because I believe if the above happens then feasibly I could end up paying the debt off in full at the very least, which seems to mean the IVA would have cost me £xxxx simply to pay off my debt in full? I accept it has had other benefits such as freezing the debt, stopping interest and protecting me from creditors contacting me but arguably it also has disadvantages associated with credit and my ability to borrow re mortgage, credit cards, hire purchase etc.

Lastly, I assume I tell them if my wife is pregnant. Question is how soon into the pregnancy.

I would be very grateful if someone could help me with this if only to tell me to talk to my advisors. Confused about the situation when my partner may be handicapped by my IVA when she never benefitted from the original debt.

morph1901

QUestion folks.

I'm considering entering an IVA to deal with extensive shortfall debts on property problems

I have a car with Hyundai Finance that I've had for about a year. It's about a third of the way through its 3 year term.

Does anyone know how Hyundai will deal with this? I have heard for example that BMW and VW will cancel agreement and take back car. Ford will let borrower continue with agreement as long as its being paid.

I can't find anyone who knows anything about Hyundai.

Depth_Charge

morph1901 wrote: »

QUestion folks.

I'm considering entering an IVA to deal with extensive shortfall debts on property problems

I have a car with Hyundai Finance that I've had for about a year. It's about a third of the way through its 3 year term.

Does anyone know how Hyundai will deal with this? I have heard for example that BMW and VW will cancel agreement and take back car. Ford will let borrower continue with agreement as long as its being paid.

I can't find anyone who knows anything about Hyundai.

Hi

What type of Finance agreement do you have and what does the agreement state? maybe loads of small print however

Tricky maybe and you need to know, I guess that the finance company are the only ones who can tell you for sure

Whoever you are taking advice off may have experience with this company.

Take full advice to be sure before you decide on anything

Best Regards

DC

Depth_Charge

Hi

On the basic subject of PPI -

Mailonline article below which includes the CABs Gillians Guys usual no nonsense take on things - also the figure of 25% mentioned in what appears to be meant as high - mmm havent we seen much higher percentages than this aired somewhere?

http://www.dailymail.co.uk/news/article-2573397/Claims-firms-cream-5billion-PPI-victims-Companies-took-25-payouts-luring-customers-using-cold-calls-nuisance-texts.html

Just my take as always

DC

FocusQueen12

DC

Interesting article.

It does make me wonder. In my own claims via intermediary you never find out exactly what is being taken as a fee. I guess it might have been in the inital paperwork but I don't recall this.

I honestly think that if you have entered an IVA that the PPI should not be able to be claimed. In most cases the money is being paid out from a creditor and then goes back to the creditor minus the fees. The only folks that benefit are the imtermediaries and the debtor (if you are lucky and get the 8% statutory interest). Surely would be better in the creditors pocket? Who are we to say?

FQ

Boorinho

Boorinho wrote: »

Hello, all. I am very new here, so please go easy on me!

Can someone either answer my queries or direct me to relevant place in the forums to access answers myself?

I have an IVA. It has been in place since May 2010. Due to expire September 2015 (had a payment holiday due to emergency funds needed re car). Since it was started my payments have increased by more than 40% of the original figure, due in part to increased salary. The original agreement was at 49% which i take to mean 49p in the £. Clearly that has increased since and including a PPI claim payment I have now paid into the scheme more than I owed at the start of it. If you take fees off, however, understandably there is still a significant portion of the debt left.

I have a few questions:

I have recently got married. The arrangement was amended when i moved in with my partner to accommodate that she would effectively conribute to the household expenses by way of a lump sum, whilst we were not married. No joint review was done, on advice from my IP/debt management company. We are not joined into any financial arrangement other than the rent on our house. Should I advise my IP of the change in personal circumstances and if I do are they likely to take everything into account by way of her income, reduced individual burden for household expenditure etc? I have a view that I have always been liable for the bills including the rent and as such they should be included in full against my income.

Can I be expected to pay more into the IVA than the original debt figure that was agreed by my creditors? I ask because I believe if the above happens then feasibly I could end up paying the debt off in full at the very least, which seems to mean the IVA would have cost me £xxxx simply to pay off my debt in full? I accept it has had other benefits such as freezing the debt, stopping interest and protecting me from creditors contacting me but arguably it also has disadvantages associated with credit and my ability to borrow re mortgage, credit cards, hire purchase etc.

Lastly, I assume I tell them if my wife is pregnant. Question is how soon into the pregnancy.

I would be very grateful if someone could help me with this if only to tell me to talk to my advisors. Confused about the situation when my partner may be handicapped by my IVA when she never benefitted from the original debt.

Anyone? Please.

Find_The_Real

Hello Boorinho and welcome, sorry that your post was not answered earlier.

I am not sure about the lump sum you mentioned when you moved in with your partner, was that recently and until your next annual review, perhaps you can clarify that so we can offer some more advice. I am presuming with your wife now pregnant (congrats) that this will mean a change in your expenditure in the future when she goes on maternity leave.

As for the amount paid into an IVA until you receive that completion certificate you are liable for 100% of the debt + IP fees + interest so it can be more than the original agreement was for especially if there has been an additional of PPI or additional income paid into the IVA, although for most people this doesn't happen and a significant amount of the debt is written off on completion as you do benefit from frozen interest and creditors unable to take further action against you.

I am sure others will come along to offer some more advice about what to do, by in my own personal opinion I would have a chat with your IP at some point about the change of circumstances as they have the full facts of your IVA.

Find_The_Real

Depth_Charge wrote: »

Hi

On the basic subject of PPI -

Mailonline article below which includes the CABs Gillians Guys usual no nonsense take on things - also the figure of 25% mentioned in what appears to be meant as high - mmm havent we seen much higher percentages than this aired somewhere?

http://www.dailymail.co.uk/news/article-2573397/Claims-firms-cream-5billion-PPI-victims-Companies-took-25-payouts-luring-customers-using-cold-calls-nuisance-texts.html

Just my take as always

DC

Yet another good article DC and none of the figures quoted really surprise me apart from the 25% figure which to me is a little on the cautious side seeing we have seen higher figures taken for their cut from these PPI claims companies.

It has highlighted the strong link between the amounts that can be made from those customers in an IVA and their ongoing claims, and makes it very clear how this has now become big business between claim firms and IVA providers where the IVA company also takes a percentage of the fees generated. The problem is that whilst these companies ensure every last penny of PPI is clawed back from the banks for their profit, customers are facing long and in my opinion unacceptable delays to their IVA being completed.

I can only hope that as this has now been going on for some long we are nearing the end of the whole PPI saga, I certainly think there should be a time limit on these kind of claims, so that future IVA customers will no longer have the issue of having to go through this. However in my usual cynical self I am sure there will be new ways to try and gain more profits from those in an IVA.

Boorinho

Thanks, Find The Real. The lump sum was based on as if my partner was lodging with me given the liabilities for utilities, rent etc. It equates to a contribution as opposed to a detailed analysis of income and expenditure for us both.


I have had a successful PPI claim that was paid into the IVA. I don't agree that this is inequitable as someone else has suggested as if I was incorrectly sold PPI then I would be entitled to compensation which I realised. In the same vein I haven't benefitted as any windfall has to go into the IVA.


I am concerned that any review now will incorporate my wife's income (soon to change drastically) and will effectively handicap her as it will be included against mine which will lead to significantly increased contributions. Can I be expected to pay more into the IVA than the original debt plus fees? I don't see how I could be required to do this if the debt was agreed through a judicial process, otherwise I could end up paying more than any original debt plan would have required. Sorry if this isn't clear. If say I owed £15k on original debt with interest frozen and fees were 5k, then could I realistically be expected to pay more than the total which is £20k?

longtermplanner

Boorinho wrote: »

If say I owed £15k on original debt with interest frozen and fees were 5k, then could I realistically be expected to pay more than the total which is £20k?

AFAIK the most you can be expected to pay in is the original debt plus fees plus statutory interest on the debts ie 8%