IVA failure - who gets the cash?

mrskingandthescarecrow

I have just been told by my IP that if my IVA fails I would not get any of the money back and the full amount that was due to the creditors when entering the IVA would become due.

She also said that they don't pay the creditors till near the end of the 60 months.

After coming off the phone I got to thinking - if I have paid in x amount into my IVA over the next few years then something happens before the 60 months is up and my IVA fails, who gets the thousands I have paid in?

Has anyone found themselves in this situation?

Interested in your feedback/experience as I am at the end of year one and have only paid IP fees. Just wondering whether to cut my losses now or grin and bear it and hope for the best.

Depth_Charge

Hi,

Sounds like you are having a really bad time here.

Did your IVA Company not fully explain how an IVA works, IP fees, risks etc before you decided to enter into it?


D.C.

cfnc

If you are coping with your IVA at the moment i would personally carry on. if it fails the money would still be passed onto your creditors less your IP fee.

What you need to remember is why you went into an IVA in the first place, no more creditors calling or harrassing you, all legal with a set time limit.

if your circumstances change for whatever reason, speak to your IP most things can be regigged.

Good luck,

CFNC

mrskingandthescarecrow

cfnc wrote: »

If you are coping with your IVA at the moment i would personally carry on. if it fails the money would still be passed onto your creditors less your IP fee.

What you need to remember is why you went into an IVA in the first place, no more creditors calling or harrassing you, all legal with a set time limit.

if your circumstances change for whatever reason, speak to your IP most things can be regigged.

Good luck,

CFNC

Hi, how sure are you on this? My IP said that the creditors would chase me for the amount due when I entered the IVA. Not the original amount minus payments after fees.

mrskingandthescarecrow

Depth_Charge wrote: »

Hi,

Sounds like you are having a really bad time here.

Did your IVA Company not fully explain how an IVA works, IP fees, risks etc before you decided to enter into it?


D.C.

Hi, no they didn't either verbally or in writing. At the time I was in and out of hospital with a difficult pregnancy and prem baby so had more pressing issues to deal with.