IVA lump sum settlement fees

101JT101

Hello all,
5 years ago I took out an IVA to help with debt problems. I have just completed unsuccessfully the remortgage clause and was told I could make 12 more monthly payments. At about the same time I took voluntary redundancy so I am now being told I need to pay a lump sum settlement which below is the breakdown of it
Can anyone with more knowledge than me explain if this is correct? I have been left scratching my head at making 12 monthly payments at £134 to being almost £8000 out of pocket.
Thanks for any responses.

ManyWays

How large was the redundancy payment in terms of months wages?

RAS

Did you get more or less than 6 month's worth of take home pay?

101JT101

It was more than 6 months, it was more than enough to pay it off. I just wanted to know if the fees they were charging were correct.

sourcrates

The fee`s are about industry standard, yes.

In an IVA, when you get a windfall, or in this case a redundancy payment which is greater than the original debt, the full balance of the original debt becomes payable, including the IP`s fees as well.

If you had not git the windfall, them you would have continued paying £134 for another year, and got a reduction on the debt you owed.

But taking the windfall into account, all of that is off the table now, and the full debt becomes payable.

This is the downside to an IVA.