Stepchange IVA Full Payment Fees

gash
gash Posts: 52 Forumite
edited 9 May 2018 at 11:18AM in IVA & DRO
Hi. I am receiving conflicting information and I need someone with experience of Stepchange to tell me approx how much I will need to pay in total to end the IVA with a 100p in the £1 payment.


The figures are:


Initial debt in IVA £28000


I have paid to date £4500 in monthly payments


I am fully aware there are fees but some people have said I may have to pay statutory interest also, but that depends on the IVA company. Basically, I would love it if someone could tell me how much I will be expected to pay IF I receive the inheritance (a house) soon, and am able to get it sold.


I know I could ask Stepchange, but at the moment I am completely unsure if I can sell the house (It was left to me and my child in a Trust and I'm still not sure if I can break the trust but the solicitor is looking in to it), so I don't want to give them the impression I can pay in full when I may not be able to.



I just need someone to say 'you'll pay a final fee of approx £25k, £30k, £35k'. I am aware I will pay back probably more than I originally owed, but I want to be armed with the figures so I'm not completely shocked if they tell me I owe £40k!! :)


Thanks in advance.

Comments

  • mwarby
    mwarby Posts: 2,048
    First Anniversary Name Dropper First Post
    Forumite
    I'd say probably around £25k on basis around half your payments so far will have been for the setup fees for IVA and first year or so of ongoing administration.
  • mwarby
    mwarby Posts: 2,048
    First Anniversary Name Dropper First Post
    Forumite
    I think statutory interest is quite rare in these circumstances (but probably not unheard of), your credits will probably be happy they are being repaid 100p in £ ahead of schedule
  • PrettyKittyKat
    PrettyKittyKat Posts: 1,270 Forumite
    It will depend on the fees Stepchange propose in your proposal, and whether the creditors placed any modifications on this. Typically I suspect you will need to pay around £35,000 overall to pay 100p in the £. As it isn't something that is possible for you at the moment I wouldn't worry too much.
  • sourcrates
    sourcrates Posts: 28,711
    First Anniversary Name Dropper First Post Photogenic
    Ambassador
    You need to be very careful here before you reveal your hand.

    This is what you will pay :

    your full debts at the start,
    plus the IVA fees,
    plus something called statutory interest (if this is in your IVA terms)
    less the payments you have already made.

    Information here :

    https://debtcamel.co.uk/iva-sell-house/
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • gash
    gash Posts: 52 Forumite
    sourcrates wrote: »
    You need to be very careful here before you reveal your hand.

    This is what you will pay :

    your full debts at the start,
    plus the IVA fees,
    plus something called statutory interest (if this is in your IVA terms)
    less the payments you have already made.

    Information here :

    https://debtcamel.co.uk/iva-sell-house/


    Exactly, which is why I'm not telling the IVA company at the moment because if the solicitor comes back and says I can't release the Trust, there's no way of me getting any capital from the house for 10 years, so no way of paying off the IVA. I can't even re-mortgage, never mind sell it.


    I wanted the info above because I also considered that if I'd have to pay something like 40k back at 100p in the £1 I might as well not make the effort of trying to break the trust.


    I really need to find out about the Statutory interest because that seems to be what may be the thing that boosts the final payment right up.


    Thanks
  • sourcrates
    sourcrates Posts: 28,711
    First Anniversary Name Dropper First Post Photogenic
    Ambassador
    gash wrote: »

    I really need to find out about the Statutory interest because that seems to be what may be the thing that boosts the final payment right up.

    If your agreement states you have to pay it, it will be at the rate of 8% per anum.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • gash
    gash Posts: 52 Forumite
    sourcrates wrote: »
    If your agreement states you have to pay it, it will be at the rate of 8% per anum.


    8% per year the IVA has been active? so say I had a balance of £27,000, would that add £2160 per year? So after 3 years £6480?


    If that's the case I'd be looking at paying back £33,500 as a final payment on an initial debt of £27000 which I've already paid off almost £5k. Total payback £38,500 (approx) over the last 2 years. Good business for Stepchange haha, but I suppose that's what I signed up to.
  • I really don't get why people use Step Change!

    I know they act as a charity and are endorsed by everyone, but they are a highly profitable company!

    Have a read through a list of their charges!

    If I was you I would go to a consumer forum with some templates, can't seem to find any for IVA on money saving expert. For IVA I would try get out of debt free

    I wouldn't endorse either of the above, but it's worth reviewing your options :)
  • sourcrates
    sourcrates Posts: 28,711
    First Anniversary Name Dropper First Post Photogenic
    Ambassador
    I really don't get why people use Step Change!

    I know they act as a charity and are endorsed by everyone, but they are a highly profitable company!

    Have a read through a list of their charges!

    If I was you I would go to a consumer forum with some templates, can't seem to find any for IVA on money saving expert. For IVA I would try get out of debt free

    I wouldn't endorse either of the above, but it's worth reviewing your options :)

    Incorrect.

    Stepchange are funded almost entirely by voluntary donations from creditors, which include banks, the government and loan companies. With their financial support, their advisors provide free and impartial debt advice to thousands of people every week.

    They operate on a not for profit basis.

    Fee’s are charged by all insolvency practitioners, and follow the industry standard for IVA’s, they are used to fund the setup and administration of your arrangement.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 342.5K Banking & Borrowing
  • 249.9K Reduce Debt & Boost Income
  • 449.4K Spending & Discounts
  • 234.6K Work, Benefits & Business
  • 607.1K Mortgages, Homes & Bills
  • 172.8K Life & Family
  • 247.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards