IVA stress

Before your Mum passed away it seems you were going to offer a full and final settlement variation with a GIFTED amount of money from a third person (your Mum). This is where 'typically' you are recommended to offer to the creditors the amount outstanding in payments/to reach original P in the £ estimate, and to ask whether they will accept this. An explanation as to why they should accepted the gifted lump sum rather than allow the IVA to continue is included in the variation report. The creditors then vote as to whether they accept this or not.

Sadly it seems your Mum has passed away before this process could be completed. In that instance if you receive any inheritance when this will be treated as a windfall (meaning 100% has to be paid into the IVA up to 100p in the £). If you've had to pay any funeral expenses then discuss this wit your IP and provide evidence as usually they will deduct this from the inheritance amount first.

Sadly when you are in a position to pay 100p in the £ it can feel like your payments have not 'paid' anything off your debt. The IP fees (including nominee fee, supervisor fee and any disbursements) are paid first then money left over is distributed to the creditors. The creditors know this and expect it. The fees of an IVA are usually several thousand so if you are paying a low payment like yourself, and then are in a position to pay 100p in the £ the amount required to be paid in can sometimes be around the same as your original debt amount. This is normal and you have not been missold

You need to ask your IVA company for your 100p in the £ calculation and then confirmation for how much is outstanding to paid.

How much is your inheritance likely to be? Are you talking about enough to pay 100p in the £?

Doylie64 wrote: »

If I can pay my creditors in full direct would it be better cancelling the IVA?

Unlikely. Any that weren't defaulted would then be defaulted - meaning it would be a further 6 years before they would be removed from your credit file. They would be able to add on interest and charges again.

It would be several months of distress as you would have to wait for their systems to be updated, and then be able to contact them individually to discuss, so although it 'could' mean you pay a little less overall (no guarantee) you would need to consider if this is worth the hassle of organising it all whilst you are mourning your Mum.

Do you have enough inheritance to pay 100p in the £?

How much is the IVA company saying you have to pay to pay 100p in the £?

The information in post #6 is correct and complete.

I think when you spoke to your IP and they said that the money you have already paid in doesn't count towards your original debt, they did not explain very well or they have given you wrong information.

Have you got previous annual statements from the other IP firms? Maybe the money you have already paid in hasn't been accounted for with this latest firm.

Your creditors will most likely add on the interest that would have been due on the £28k original debt.