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

MrKev83

Mr original debt was £22,518 and now I'm paying the £18,666 plus an extra £7,785 in fees so its actually increased hasn't it?


I get the £50 continguency and £130 allocated for food (got that wrong previously)

MrKev83

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

I don't know. I just looked at it, after reading on here and it appears I'm paying 18666 + 7785 back when I originally owed 22518 which seems strange that an IVA means I'm actually paying a higher total back, including there fees.

CLAPTON

no the fees are included so you were intended to pay only 18,666 ..its your creditors that are taking the hit on the fees.
but i dont understand about your new arrangements .. have they agreed that you only pay 170 per month and for how long?

NekoZombie

As you say yourself, you are paying

£279 x 42 months = 11718,

£386 x 18 months = 6948

Total = 18,666

which is less than you original debt. Of the 18,666, £7785 is composed of fees, meaning your creditors get 10881.

MrKev83

Forgot to mention, I am in the armed forces so the 1200 is after I've paid my work accommodation. I then decided to start renting back home ready for when I come out later this year.

I rang them up after I started renting which added the 305 plus 30 for gas to my bill when I was paying 279. The company said make an offer and they suggested 170 so thats wot I pay.

MrKev83

Of the 18,666, £7785 is composed of fees, meaning your creditors get 10881.

I thought the £7785 was on top of the £18666 I was paying, this might be where my confusion is.

NekoZombie

Its already included in your payment schedule. Wouldn't a simple call to the company have cleared this up? As has been pointed out, you have recently changed your repayment schedule, but in the end you'll still pay the same amount - your repayments in the latter stages are going to be *huge* though.

MrKev83

My post was at 2 16 this morning as I work nights so couldn't ring them and just panicked and posted on here, cheers for your help guys, makes me feel a lot better in my mind, well that sorts that.....just this now, this is so appreciated

your repayments in the latter stages are going to be *huge* though.

So i'll have to make back the 109 a month I'm not paying at the moment towards the end of my arrangement???

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

MrKev83

think a call to the company might be the best option unless anyone knows?

Eager_Elephant

Hi Kev

You need to ring the IVA company, they will have eitherheld another creditors vote and asked them to accept the reduced amount for the life of the IVA so the pence in the £ is lower or they will expect you to catch up at the end.

It could quite possibly be the second as when you leave the Army your travel costs will go down, you will only have one place of residence and presumably you will get a job and have an Army pension?

EE