Problem with IVA (£7785 total fees) ???

MrKev83

I jumped into an IVA too quickly last september after basically having the idea sold to me.

I've been reading a lot on here about the companies that are just out to make money out of me and I think I've been stupid.

My IVA proposal shows:
Realisations: (presume this is my debts)
Monthly payments
£279 month 1-42
£386 month 42-60 (due to car finance finishing and being included)

My IVA term is 60 months. Total is £18,666

Under the costs section (this seems way to high)

Nominees fees: £2,100
Disbursements: £500
Supervisor's fees: £4,100
Irrecoverable VAT: £1,085

TOTAL: £7,785


Have I just been "bent over royally" ? or can I get out of this? I've been in the IVA (Struggling) since last september.

Thanks in advance.

james32_uk

The fees you pay have nothing to do with how big your repayments are. The fees are a bit heavy (not horrendously bad) but if anything it's your creditors who suffer as the bigger the fees are the less you pay them back!

You cant get out of an IVA without going bankrupt.

CLAPTON

the fees quoted are about the going rate.

how much were your debts? (realisation is how much you are repaying and not your acual debt)

there isn't really much you can do now as an IVA is a legal agreement except to withdraw from the agreement.
unfortunately many IVAs fail because the repayments are set too high.
presumably you agreed an income and expenditure schedule with the IP? have your circumstances changed?

Eager_Elephant

Check the terns of your IVA, some no longer have the clause that they will make you bankrupt if you fail.

It is not you who pays the fees as such, it comes out of the pot so your creditors get less.

I suggest you post a SOA for people to look at and give you other ideas.

EE

MrKev83

Thanks for the quick replies :beer:

My total debt was £22,518.44 excluded my car finance cos thats kept seperate.

presumably you agreed an income and expenditure schedule with the IP? have your circumstances changed?

I did agree an income and expenditure, I had no idea how much I actually spent on food so just used there figure of 130 a month

My circumstances changed and will be about to change again in a few months and they are aware of that.

Thanks again, in advance :rolleyes:

MrKev83

My SOA....

Income: £1200

Outgoings:

IVA: £170
Car finance: £106.88
Fuel: £150 (I commute to my permanent address from my work address every week (200 miles each way)
Sky: £15
BT: £13.50
Car Insurance: £39.50
Kit insurance: £6.16
Internet and phone bill: £25
TV Licence: £10.95
Rent: £305.75
Gas: £30
Food: £130 (edited after, originally posted wrong)
Continguency: £50

I think thats everything apart from any time I need clothes and being bad on ebay, but I'm working on that.

I was reading terms of an IVA and its stated that you only have to declare half of any extra income if its over 10% of your regular income....so is my thinking right, that if I don't earn over an extra £120 a month I don't have to tell my IP cos I'm thinking of driving wagons(agency work) on my days off

So has an IVA actually increased my debt then?

Dr_Hook

MrKev83 wrote: »

So has an IVA actually increased my debt then?

Well... no. Your debt was £22,518 and you're paying back £18,666 over 5 years, so your debt has been reduced by £4k-ish. As well as the interest saved as that will now be frozen.

To be honest, the income & expenditure you've posted sounds on the generous side - is this what it's at in the IVA? There's usually a provision for clothes and a £50 contingency allowance too.

£50 per week food is a lot to spend on one person, most folks on here would make that last a month.

CLAPTON

sorry i dont understand
you say the IVA was for £279 for months 1-42 etc but you are only paying 170?
how does that work then?

Zulu_Dawn

Your original correspondence shows your IVA at £279 per month but your SOA and sig is £170 per month.

I don't really understand IVA's but this makes no sense to me. It does appear as though you have gone onto a pretty heavy agreement, lost a great deal of flexibility and still will end up repaying most of what you owed (82.8% if your OP is correct)

Can you check your figures as I might be jumping to the wrong conclusion?


Cheers,

ZD

MrKev83

I had a change of circumstances so it changed

NekoZombie

MrKev83 wrote: »

My SOA....



So has an IVA actually increased my debt then?

technically, no, though if you default you may find that all the money you've paid in only goes towards the fees, meaning that you're no better off than when you started the IVA.

Another question is what you plan to do if you default on the IVA. Are you considering bankruptcy?