IVA Question

Business_Boy

Hello all. I’ve been in an IVA for about 18 months now and all going well. However, one of my creditors hasn’t withdrawn any of the money I’ve paid in. They also continue to send me statements (albeit without any interest added and no follow up). I wanted to know what happens if I complete my IVA and they still haven’t withdrawn any of their allocated funds. What happens to this money I’ve paid in? It’s my largest creditor (10K) so keen to find out what happens here. I’ve asked my IVA company but they’ve not been much help. Has anyone had a similar situation?

sourcrates

Your monthly IVA payments are made into a bank account, opened especially for you by the IP who runs your arrangement.

So you have a pot of money sat there, out of that pot also comes any fee`s/charges/VAT/ interest, in fact any other charge associated with running the IVA.

At certain times your IP will invite your creditors to claim a disbursement from them, there share of the money for a particular period, sometimes, as happened to me, the creditor fails to claim that money, for whatever reason.

If your IVA ends, and they don`t claim the money within a specified timeframe, then under the normal terms of your IVA, the IP should pay that money back to you.

It won`t affect your debts one way or the other, they will still be written off, and you won`t owe anything, its up to the creditor to claim what is rightfully theirs, and its there hard luck if they don`t.

mrcactus

I had 19 creditors and although most of them have been transferred to debt collection agencies, I still recieve statements. Somewhere on those statements it usually says something like "we are aware that you are in an IVA but statements must be sent annually by law" or something like that. Some of mine say no action is required. 

I found it confusing in my first year of being in the IVA. Statements being sent etc, and even a payday loan company texting me if I paid them £50 today they would close the account    

Pretty much what sourcrates says... keep paying the agreed amount to your IP on the dates set out and everyone else can do what they like...long as you've paid the amount.

Also, would you mind sharing who your IVA is with? Just curious as mine were often difficult to get hold of, often taking 2 weeks to reply to my emails.