paying more than originally stated

greenbrucelee

When I set my IVA up it was stated that I would pay back 37%. I have already paid back 37% is there anything I can do to not pay anymore? or do I have to keep paying until my IVA finishes is March?

National_Debtline

Hi

You have to keep paying the full term. Sometimes people end up paying more if their finances change and there is more money available each month. It should be clarified in the terms of the IVA proposal. Is this what happened in your case?

James
@natdebtline

greenbrucelee

I pay more if I earn more than 10% of my original wage I have to pay 50% but I have never seen anything in the proposal that says you have to pay 37% or more.

Lincsdebt

I'm interested in this thread too.


My final payment on the IVA is this month, and it was stated I needed to pay 72p/£ back for the IVA to succeed. I will have paid 74.5p on monthly payments alone, but including the PPI received 84.2p. These figures don't include supervisors' fees etc as I deducted them before doing the sums.


The total figure I've paid is more than the (inflated) total of my debts on the proposal. I am pretty sure my creditors added to the total as my figures were probably £10k less than the total on the proposal. But what can you do in that situation?


I don't expect anything back, but there does not seem to be any kind of cut-off point. I'm just thankful it's almost over, six years is a long time.

DorisTrousers

It is important to remember that an IVA is a way to pay back as much of your debt as you realistically can, but with safeguards built in, such as interest freeze and no creditor action, along with a defined timescale, usually 5 but occasionally 6 years.

As no-one has a crystal ball, all an IVA firm can do at the outset is to estimate how much will be paid back in the event that nothing changes during the lifetime of the IVA. That may be expressed as Xp in the £. Sometimes, as circumstances change, that figure will increase.

The comparison that should really be made is if you did not have the protection of an IVA, and found yourself better off going forward, would you have paid more off your debts in the meantime? The answer is almost certainly yes in most cases, and so people are no worse off than they would have been, they are still massively better off than they would have been by allowing the original situation to continue.

Hope that helps.

greenbrucelee

Thanks but what grieves me is that I work crazy hours doing loads of overtime and I basically am killing myself doing hours that no one should work for no money as it goes into the IVA. Thats why I am already passed the original 37% dividend.

Say I do 20 hours at double time, after that tax man takes his but it's more like 12 hours pay at double and then after the IP take their bit it's more like 6 which makes 14 hours of it pointless. I can't actually wait until I get paid with overtime on my wages after my last payment in March.

National_Debtline

greenbrucelee wrote: »

I pay more if I earn more than 10% of my original wage I have to pay 50% but I have never seen anything in the proposal that says you have to pay 37% or more.

I think you should discuss this with your IP then as the terms will clarify your legal liability.

James
@natdebtline

National_Debtline

Lincsdebt wrote: »

I'm interested in this thread too.

My final payment on the IVA is this month, and it was stated I needed to pay 72p/£ back for the IVA to succeed. I will have paid 74.5p on monthly payments alone, but including the PPI received 84.2p. These figures don't include supervisors' fees etc as I deducted them before doing the sums.

The total figure I've paid is more than the (inflated) total of my debts on the proposal. I am pretty sure my creditors added to the total as my figures were probably £10k less than the total on the proposal. But what can you do in that situation?

I don't expect anything back, but there does not seem to be any kind of cut-off point. I'm just thankful it's almost over, six years is a long time.

The most anyone should ever pay on an IVA is the total debt level plus the fees, and that is usually where someone has had a large increase in income or a windfall. If the debt totals were incorrect when the IVA was set up you may have grounds to complain about your creditors to the FOS for supplying false information.

I don’t know where you would stand in terms of signing the IVA agreement in the first place though, as that could look like you accepted the debt totals as correct at that point.

James
@natdebtline

Srgur

Hi Greenbrucelee,

Really empathise with you here, like you, people we know just finished what turned out to be more than 7 years in an IVA. What they were paying throughout looked nothing like the original amount when they entered in fact at some stages it was quadrupled thanks to many promotions and bonuses. Only people in an IVA dread a large pay packet. The last 6 months was a nightmare as they scrabbled for every possible reason to find more, impromptu annual reviews and payslip checks not to mention the IP's many 'miss calculations' resulting in the wrongful owing of £1000s out of thin air, only to be quickly withdrawn when contested.

Just because they accepted the T&C and supported the maximum capable payment agreement it still made them gutted to work so hard then hand over practically every penny knowing the original dept was long paid off and these were now 'fees' - it was a long slog but they got there in the end. I'd avoid overtime and save your energy and health for when you will get the rewards.

Here's to you finishing - nearly there. Good luck.

adyj73

You don't owe them 37% you owe them 100% of your debts. 37% is a forecast if nothing changes in your circumstances during the term of the IVA and is the terms they will accept at that point in time based on your circumstances.

I also dreaded payrises but my meagre rises during my IVA matched the increased costs of living so my payments never changed. And you are right only those in IVA dread a big payrise

TBH I would weigh up if its worth you doing all this overtime during the IVA as it sounds not to me

I think I was lucky in the end, I finished early with a F + F settlement with money gifted from family for the sole purpose of a F+F and I only ended up paying back 21%. If I had received a windfall I would of course have expected to pay up to 100% plus IVA fees and annual interest if required. Its our debt at the end of the day

greenbrucelee

thanks both, I only have 4 payments to go. Unfortunately the dept I work in only has 3 of us. So if someone is off then the OT is mandatory as the work we do would affect the entire production for that day or week