Stat interest IVA

Philsew

Hi all,

Quick question. I am in an IVA and owed 8k, I've paid 3k and now have received an inheritance. The IVA company now want 20k off me to repay my debts? Is this figure in the right ballpark or is it way off?

Thanks

sourcrates

Hi,

I assume you've already told your IP about the inheritance before posting for advice ?

Big mistake in my opinion.

If your total debts were only 8k, and you have repaid 3k, you most likely have not yet reduced your debt at all.

Your IP`s fees will be in the region of 6-10k dependant on your individual agreement, add your original 8k debt to that, plus sundry fees, legal costs, and interest etc, and you wont be far off the 20k mark.

Who originally advised you to get an IVA ?

As your debts were only 8k, did you not realise the fees associated with an IVA can be astronomical ?

That's why they are usually only recommended for larger debts of 30-40k plus, due to the high cost of arrangement fees.

Philsew

I was hoping to do the right thing by telling them! It is an interlocking IVA with my wife who has more debt than me. I have looked at what stat interest I should pay on £8k over the 3 years I've been in the arrangement and it should only be about 2k. Surely they also cannot charge fees for work they would have done in the final years of the arrangement?

I'm really mad about this because the total costs in my summary before the IVA only came to about 12k and I've paid 3k

sourcrates

Philsew wrote: »

I was hoping to do the right thing by telling them! It is an interlocking IVA with my wife who has more debt than me. I have looked at what stat interest I should pay on £8k over the 3 years I've been in the arrangement and it should only be about 2k. Surely they also cannot charge fees for work they would have done in the final years of the arrangement?

I'm really mad about this because the total costs in my summary before the IVA only came to about 12k and I've paid 3k

I can only comment on an individual IVA, not had any experience of an "interlocking IVA".
You need to check your paperwork, and possibly phone National Debtline for advice on this.

The correct way to of done it would of been to offer a full and final settlement offer without revealing the source of the funds as an inheritance, an offer from a relative would of been sufficient.


Now they know you have the full amount, they want the lot.