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    • gash
    • By gash 9th May 18, 12:15 PM
    • 50Posts
    • 16Thanks
    gash
    Stepchange IVA Full Payment Fees
    • #1
    • 9th May 18, 12:15 PM
    Stepchange IVA Full Payment Fees 9th May 18 at 12:15 PM
    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.
    Last edited by gash; 09-05-2018 at 12:18 PM.
Page 1
    • mwarby
    • By mwarby 9th May 18, 5:53 PM
    • 831 Posts
    • 310 Thanks
    mwarby
    • #2
    • 9th May 18, 5:53 PM
    • #2
    • 9th May 18, 5:53 PM
    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
    • By mwarby 9th May 18, 5:58 PM
    • 831 Posts
    • 310 Thanks
    mwarby
    • #3
    • 9th May 18, 5:58 PM
    • #3
    • 9th May 18, 5:58 PM
    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
    • By PrettyKittyKat 9th May 18, 8:42 PM
    • 641 Posts
    • 602 Thanks
    PrettyKittyKat
    • #4
    • 9th May 18, 8:42 PM
    • #4
    • 9th May 18, 8:42 PM
    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
    • By sourcrates 11th May 18, 12:26 AM
    • 15,311 Posts
    • 14,399 Thanks
    sourcrates
    • #5
    • 11th May 18, 12:26 AM
    • #5
    • 11th May 18, 12:26 AM
    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 Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
    • gash
    • By gash 11th May 18, 10:13 AM
    • 50 Posts
    • 16 Thanks
    gash
    • #6
    • 11th May 18, 10:13 AM
    • #6
    • 11th May 18, 10:13 AM
    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/
    Originally posted by sourcrates

    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
    • By sourcrates 11th May 18, 1:33 PM
    • 15,311 Posts
    • 14,399 Thanks
    sourcrates
    • #7
    • 11th May 18, 1:33 PM
    • #7
    • 11th May 18, 1:33 PM

    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.
    Originally posted by gash
    If your agreement states you have to pay it, it will be at the rate of 8% per anum.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
    • gash
    • By gash 11th May 18, 2:09 PM
    • 50 Posts
    • 16 Thanks
    gash
    • #8
    • 11th May 18, 2:09 PM
    • #8
    • 11th May 18, 2:09 PM
    If your agreement states you have to pay it, it will be at the rate of 8% per anum.
    Originally posted by sourcrates

    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.
    • DannyPearce90
    • By DannyPearce90 17th May 18, 10:38 PM
    • 1 Posts
    • 0 Thanks
    DannyPearce90
    • #9
    • 17th May 18, 10:38 PM
    • #9
    • 17th May 18, 10:38 PM
    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
    • By sourcrates 17th May 18, 11:51 PM
    • 15,311 Posts
    • 14,399 Thanks
    sourcrates
    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
    Originally posted by DannyPearce90
    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.

    Fees are charged by all insolvency practitioners, and follow the industry standard for IVAs, they are used to fund the setup and administration of your arrangement.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
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