IVA: Useless Administration of IVA
Long post ahead! Read some really valid and valuable posts on here over the last several years and was hoping just for a bit of information/guidance with my ongoing IVA.
I took the IVA out in 2019 as I had loans/credit-cards totalling £40k. I don’t own my home and privately rent and went through the motions of speaking to a firm (who I know are in it for the money) who “recommended” an IVA was the best solution. Creditors meeting upped the duration from 60 months to 72 months which I thought “ok, in 6 years at least I’ll be able to make a fresh start”.
The IVA started great, payment stayed the same for a few years before the company handling it was shut down (Vanguard). Everything ran smoothly with them: sending in everything that was agreed prior to starting the IVA (overtime payments, annual review etc). However, since they closed and I was moved to another company and it’s been shocking. I’ve sent in wage slips showing overtime for them to “work out” but they don’t respond. Last years annual review they finally responded and upped my payments from £213 to £250 and also responded about the overtime and gave me 3 options:
- Lump sum the overtime payments (£174)
- Pay additional money over 6 months (£29)
- Extend the IVA
I took option 2 to pay the additional money over 6 months (£279). However, after the review and receiving the Annual Review letter I noticed my IVA duration had changed from 72 months to 78 months. I constantly emailed them about overtime etc and they’re not interested so it’s the only reason I can see it been extended although I paid the agreed overtime back through their options and I’ve never missed a payment and always kept them up to date with additional income.
So my annual review for 2022 has been sent in (back in December 2022 as that’s when they requested it) and up to this point I haven’t had a response. Furthermore, my IP has changed (only found out through Google), so I’m just wondering what the best route to go down is with regards to who do I approach and what should I do going forward?
IVA taken out in February 2019 - January 2025 (72x monthly payments agreed at the start of the IVA, 78x payments shown on Annual Review letter in February 2022). Currently 50 payments made to date.
IVA extended for 6 months (was never told, only noticed when I looked at previous years and last years and noticed the additional 6 months) - should I have been informed as to why? Anyone know why it would happen without me missing a payment or contacting them with regards to going over the threshold?
Company doing the administration work on behalf of the IVA IP not responding/doing what they’re supposed to do when I’m doing everything set out in the agreement especially in regards to overtime payments and nothing about the cost of living increase from last year.
Whether or not taking out the IVA was the right thing to do, I don’t know. Are they going to add additional time on for more payments without telling me or giving me an explanation each year?
Original proposal: £196 for 60 months paying £11,760.00 writing off £27,576.00
Changed proposal: £172 for 72 months paying £12,384.00 writing off £26,952.00
Payments to date: £10,695.00
At the current rate (I think if/when they do get in touch, my payments will stay the same or even go up) if my IVA finishes at the originally agreed time, I’ll have paid £16,830.00 back (still a massive amount written off) or £18,503.36 if my IVA has had an additional 6 months added on as shown on last years Annual Review letter.
I know I signed up for additional income and agreed to payments going up and for the 72 months duration which I’m absolutely fine about, but I didn’t think I signed up for a company to “fake” their way through the handling of my IVA and to basically do what they want, when they want and this being potentially one of the worst decisions I’ve made in my life should they continue to operate the way they do.
Again, if that’s what it is, that’s what it is.
Going forward, I’ve got either 22 months or 28 months left depending on the next annual review (or even 34 months should they do their party trick like last year or more).
Having made 50 payments so far, I don’t want the IVA to fail as there’s still a lot of outstanding debt owed, but I feel I’m left in limbo and could end up being tied in the IVA a lot longer than what I was “told” I’d be in it for and put my future plans further back.
A lot of you seem really knowledgable and have helped hundreds if not thousands out over the years, so I think I’m looking just for some guidance and reassurance with the remainder of the IVA and how to approach the ongoing ignorance of the administration of my IVA.
Thanks for taking the time to read and I’ll look forward to your help/guidance.
- All Categories
- 338.8K Banking & Borrowing
- 248.6K Reduce Debt & Boost Income
- 447.5K Spending & Discounts
- 230.7K Work, Benefits & Business
- 600.7K Mortgages, Homes & Bills
- 171K Life & Family
- 243.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards