IVA want to pay off more - help!

Ellieb237

I set up an IVA in December 2018,  for around £6000. Ive got around £4000 left.

My financial circumstances have changed significantly since, in that at the time of the IVA being set up I was a student. Now, I earn lots more a month since qualifying in my role.

I contacted Aperture to inform them of this change a few months ago and filled out a new expenditure form but I never got a response. I have since made two more phone calls to Jarvis (who have taken over apeture) and both times have not been given any real information on what I can do. This has led to me feeling distressed because I desperately want to pay off as much as I physically can and as far as I am aware that whilst my salary has increased I am legally bound to be paying more into my IVA. It seems though, despite my efforts to do this, it has not been actioned. I made a further phone call and was advised to write an email with my concerns and include an updated expenditure form which showed I can afford to increase my payments 5x what I am now. I did this 2 weeks ago and still not recieved a response. Ideally i want to increase my payments monthly so that i can pay off the iva sooner. Feeling so worried about it all and desperately want to get rid of it.

Can anyone shed some light or advise me? Would be so greatful. 

sourcrates

You were ill advised to take out an IVA for just 6k of debt, they have really scrapped the barrel with this one.

Mis-selling of IVA`s is rife, and this is a perfect example.

This solution is designed for homeowners with tens of thousands of pounds worth of debt, who cannot go bankrupt due to the assets they hold, not for a student with just 6 grand of credit card debt, utterly scandalous.

You won`t be aware of how much you still owe, IVA`s do not work like a conventional repayment scheme, you make monthly payments into a pot, out of that pot the IP takes his fee`s, and any other charges that are incurred, at regular intervals they also make disbursements to your creditors, the fee`s alone will be a few thousand pounds.

Anyway thats water under the bridge now, put your thoughts in writing to your IP, then at your yearly review they will probebly up your payments, as long as you inform them in writing, the rest is up to them.

Ellieb237

Thanks for your reply. Yes as time has gone on ive really realised that that was a bad move. Im so worried about it. As I want to be able to buy a house etc. I have already wrote to them but its just trying to get a response from them! No one seems to reply to me. Its really stressful. 

Ellieb237

Do you know if i saved up enough money can I pay it off one go? Ive already suggested this to them but they said it has to be gifted, because it is presumed all my spare money should be going them. However because they're making no effort to increase my payments, I am saving my money, so I will be able to pay it off in one go in a few months.

sourcrates

It’s difficult to advise because they seem to be putting up barriers to your every move.

Anyway.......
there are two ways you can proceed.

(1) Say the money is a gift from a relative, get them to propose a full and final settlement to your creditors, see what they will accept.

(2) Let the arrangement fail, this can take a year or more to sort out, then settle with your creditors individually.

Your credit file cannot get any worse whichever option you take.
Option (1) would be preferable, but (2) is there as a fallback plan.

Ellieb237

Thank you for your time.