IVA overpayment?

damien_g

I'm 22 months short of completing a 60 month IVA term and i've found that my contributions have rose from a start of £302 per month to £542 per month to date, paired with the fact i have to give 50% of any overtime or bonuses to the company i've worked out that to date i've repayed just short of 17k.

While the pay increases at work were great i've realised that without providing 50% of my overtime (an average recently of £150 per month) if i continue to pay my standard monthly contributions i will have overpaid my original IVA total of 28k which includes the interest originally frozen, that means the sum quoted (18k) no longer applies and i will have paid everything including the interest, dont mind that at all since it was me that spent it....BUT surely continuing to pay my 50% overtime con (last minute letter by the accountant, very sneaky) cant be fair since that will take the total to 34.5k approximately, that being 6.5k OVER what i originally owed including interest.

I called another free debt advice service and they said that i still have to pay it because any surplus goes toward the arrangement fees which are usually 1.5k per year, but how would the company i'm with know people will overpay? because if they dont then that means they dont get paid and in my experience nobody does anything for free, i'm confused and i probably think the best thing to do is visit a financial specialist, i've got an appointment at CAB on Friday morning but i just wondered before i go if anyone here has a clue how i can manage not to get ripped off in my final two years, i dont mind paying the full amount of 28k but i'll be damned if i'm going to pay more than i owed.

Thanks in advance for any help....

LouLee2008

Thats odd.. coz my partners iva he is paying less then what he owes.. and he doesnt have to pay any overtime.

shopaholic2008

same here my oh had a lump sum of his debts cleared as part of the iva agreement however he does have to complete a form every year where he states his payrises etc so may check with him to make sure he doesnt end up paying more than expected

damien_g

LouLee2008 wrote: »

Thats odd.. coz my partners iva he is paying less then what he owes.. and he doesnt have to pay any overtime.

Originally i would have paid less, 18k rather than 28k but with nearly two years left to pay i'm already within £1,000 of that total so now any further contributions are to pay the frozen interest, fair enough i say, but with the continued £542 per month and the average of £150 per month overtime it all equates to me having paid back £32,224, about 4.25k more than i originally owed including interest.

The company dealing with my IVA and i'll name and shame if i'm allowed to must have by now realised i'm close to making the 18k but i haven't heard a peep out of them aside from demanding their 50% overtime. They were recommended by one of the government approved debt services and everything was hunky dory, they told me to cancel the company i was currently with (Baines & Ernst, yes, i know, rip off merchants) and sign up with them. The day after my creditors had accepted me they dropped the 50% of any overtime and bonuses clause, having nowhere else to go and being very naive i accepted and this has become the final outcome.

doelani

Hi Damien

Not sure if there is a lot you can do about it , the agreed dividend that would have had you paying back £18k would have been a minimum. The IP is obliged to get as much as possible for the creditors up to 100% of what you owed plus their fees. the 50% of overtime is included in a lot of IVA's. You may find your proposal also includes a windfall clause , so if you won the lottery or inherited money you would have to declare it and again would have to pay the 100%.

Our original IVA says we would pay back a min of £67k of a £110k but were told if our equity increased ( which it has ) we would be exoected to pay up to 100% of original amount. We had equity release in year 5 of approx £26k but our equity in home is not £120k although we could never afford a large mortgage. We are lucky we have had a Full and Final on our IVA agreed due to remortgaging early but even though we are paying it off after 3 years instead of 5 we are still paying £70k which is more than originaly agreed.

Check your paperwork and I am sure someone else will correct me if I am wrong but if youc an afford to repay it all + fees that is what you will be expected to pay.

skibadee

damien_g,
which company are now dealing with your IVA?

damien_g

Its a company called 'Debt Lifeboat' that were formerly 'Baker Tilly'.

I can see the only way to get around it is to not do anymore overtime, shame because i was going to use that to repay debts to the family.
I'll see what the CAB say on Friday, but i'm pretty sure that 4.5k over the original payment cant be right......