Reasons for IVA extention

Concerned75

And for the 2nd time in MY opinion, the IVA was set up when I was not physically and mentally able to make important decisions about financial contracts. It was pushed on me by my mortgage company at a very vulnerable time.

phil2580

Whether the PPI policies paid out or not is completely irrelevant. You were complaining about whether it was right that your IVA payments were increasing. If your monthly disposable income increases, then categorically yes, just as your contributions would in any other form of debt relief.

I'm actually struggling to see what your angle is on this.

You are going to end up walking away at the end of year 6 (maybe 7), having paid back less than 20% of what you actually owe your creditors, and that's before interest and charges are taken into account.

As for being pushed on you by your mortgage company, what is more likely is that you were told to seek independent financial advice, perhaps with a view to seeking an IVA.

The points here are simple:
- You didn't read the terms and conditions of the PPI policies, so they didn't pay out when you were unable to work (pre-existing medical condition?)
- You didn't read the terms and conditions of your IVA proposal, or seek independent advice, before you signed it, so you failed to understand the implications of the annual income and expenditure reviews.

DorisTrousers

It is easy to have sympathy here for both viewpoints, however it is wise to remember that an IVA is, in a nutshell, a way to address unaffordable debts with the view to either:

a) pay 100% of the debt back, with certain advantages whilst doing so

or

b) having a prescribed timescale in which to pay, after which, by law, any remaining debt is legally written off

I am sure the OP took on the debt with the intention of paying 100% of the debt back, so it is, if I may be so bold, a little churlish to object to paying back a lot less, albeit more than originally estimated.

It is extremely difficult to prove IVA mis-sell and I very much doubt this would be the case here. Unless the OP made the IP aware at the time of signing up that there was a medical issue? Bear in mind that an IVA takes typically at least 4 to 8 weeks to set up, so it is hardly arguable that it can be rushed into. DRO, DMP, even BR can be done in a matter of days sometimes, so having had an opportunity to question and query and not taken it, assumedly, doesn't really hold water after all this time.

TakeAwayKing_2

Does it say in your proposal that you have to pay your creditors 100p in the £ plus statutory interest ?

Concerned75

When the PPI was taken out, I didn't have an existing medical condition, so that clears up that assumption.
As for paying 100p in the proposal, I'm not 100% sure. I would have to delve into that.
What's done is done and hopefully the plan will soon be over.

DorisTrousers

Reading my last post back, it is maybe not as clear as I wanted it to be.

It isn't a choice between 100% payback and any lesser figure, I possibly should have put it that the IVA will cease either at 100% or at the end of the timescale, whichever comes first. There are cases where, say, 20p in the £ was expected but, due to windfalls, inheritances etc then 100p in the £ was achieved.

IVA's where 100p in the £ was the original figure expected are relatively rare, and therefore most IVA's that reach the end will result in significant debt write off.