IVA so far, nearly at 5 years

djc90 · 9 December 2018 at 2:06AM

So I spoke to my IP Friday while changing my payment date and found out I have £2550 in payments left.

My salary has risen considerably over the term and therefore so has my monthly payment at each annual review.

I decided to work out exactly how much I had paid to my IP from my first payment in April 14 till now December 18 and went through my online bank statements. £12,058. My initial debt was around £10,000. I know my IP will have been taking a cut every month for their services but I have paid more that my initial debt was. I'm not sure what percentage the IP takes but I'd imagine there is little to no debt left to write off now, never mind when I've paid this £2550 that's left. (£14,608)

My 5th year anniversary of my first payment will be April 2019. At my current monthly amount I'll have paid that remaining amount July 2019.
I missed 6 payments throughout the agreement through agreed payment breaks due to unforeseen additional expenses, these were added to the end. So, that would mean 6 more to make it to the agreed 60 payments will take me to September 2019.
If there is only £2550 left to pay and that would be done in July, continuing with the payments to make 60 would mean I'd paid more than that the £2550 they say is left.

Can anyone tell me what will happen when I pay that final amount? Will they end the IVA or will I have to continue to pay until I've made the 60 payments? That would mean I paid £15,559 in total, for about £10k of debt. Or do they mean £2550 is what's left of the original debt and whatever fee they take, so once that's done, I'm done?
I imagine most people reach the end of the IVA with some debt remaining and either have it written off, get asked to remortgage, or told to do another year. I don't suppose everyone managed to pay pack the debt before the end of their IVA like I seem to have, I have just been very lucky to be able to increase me salary to nearly double what it was when I entered into the IVA within the first 2 years. Annoyingly, on my currently salary I'd have managed my original payments to creditors and wouldn't have needed the IVA but hey ho!

I guess there will be no reason to ask me to remortgage or do an extra year, there will be no debt to write off.

If it helps, The IP was originally Knightsbridge, but was handed over to Creditfix in 2017.
Thanks!

Craig1981 · 9 December 2018 at 10:03AM

you wont pay more than your original debt and the cost of the IVA itself - costs will range anywhere form £6k to £10k, depending on the IP.
best to check your original paperwork for the costs of the IVA

usually, the IP will cover majority of their costs first, then rest of payments will go towards debt (mine did)

from what you have stated, doubt very much a re-mortgage or further payments will be due after month 60, if you havent cleared it prior

sourcrates · 9 December 2018 at 12:38PM

Hi,

You had a very small amount of debt, by IVA standards, usually these agreements are designed for people who have significant assets to protect, and so cannot go bankrupt, and who have a large amount of debt.

When i say large, i mean in excess of 30k and upwards, although there are no upper or lower limits, an IVA tends to be more suitable for someone with a very high debt level.

This is because of the amount that is taken from the pot by the IP in fee`s, there are various fee`s to be paid, as well as VAT, use Google to see a complete list of fee`s applicable, these are not exhaustive, but an example is :

A nominee fee, it could be either the first five payments into the IVA, or £2,000.

A supervisor fee, the Supervisor fee is 15% of any further realisations, to cover the on-going costs of the IVA.

Disbursements, these are expenses that are paid to third parties during your IVA and include insurance to protect any money paid to your IVA, system maintenance fees, and a registration fee to register the IVA with the Insolvency Service.

Your specific fees will of been confirmed when your IVA proposal was drafted. These were also subject to approval by your creditors.

PrettyKittyKat · 9 December 2018 at 3:55PM

You are only ever expected to pay 100p in the £, which means total debt + IVA fees (nominee fee and supervisor fee, plus disbursements).

Ask your IVA company for a 100p in the £ calculation. Subtract from that what you have paid and that leaves the maximum amount that would need to be paid into the IVA before it finishes. Your IVA finishes when you have either paid 100p in the £ or finished the term and all obligations. It is unusual for someone to pay 100p in the £ but not unheard of. I would recommend you work out approx when 100p in the £ is paid and call the IVA company after that payment to clarify as their system may not automatically acknowledge it.

djc90 · 12 December 2018 at 11:57PM

Thanks for the replies guys. I spoke to my IP again yesterday to clarify and they said the £2550 left to pay (£2161 now I've made this month's payment) is all that's left. Once that's done I have paid all in full and will have completed my agreement with no remortgage or extra year necessary.
At my current monthly payment that is 5.5 payments, so come May I will phone to pay the extra half payment and be done.
It will have taken 5 years and 1 month, it's been a long road but I cant wait to be debt free for the first time in almost 10 years!

IVA so far, nearly at 5 years

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