Author Topic: settling an IVA  (Read 2804 times)

wittsy

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settling an IVA
« on: Mar 30, 2013, 09:04:39 PM »
 Hi, I am approx 1/2 way through paying my IVA. I received a windfall payment, however was outside the time limit of 7 days when informing my IP, Payplan. This was due to dealing with the death of my father and my very sick mother who also almost passed away. I sent back dated information of my windfall to my IP, knowing that it would be enough to pay back my debts in full. My IP is asking me to pay back the sum owed plus several thousand pounds in interest paid at the statutory rate from the start of the IVA. When reading the "proposal", it clearly states that " the supervisor shall only receive such sums as would be necessary to provide 100% settlement of the debtors liabilities, plus fees, expenses and disbursments- nothing at all about interest. As far as I know they have not "failed" the IVA due to my late notification. If the IP were to issue a certificate of "non compliance" and fail the IVA due only to this late submission-( there is no other reason, as I am willing and keen to repay my debt), then the "standard conditions" in my contract state that "any creditor shall be entitled to in respect of his debt to proceed against the debtor as he sees fit." I have been told by my IP that this means they can add interest and charges at their rate for the whole time of the IVA. Is this true, rather than adding interest at the statutory rate? Sorry for this long ramble, but I am feeling totally bullied by Payplan! I haven't even mentioned their own inefficiency in getting back to me....it has taken them 5 months to try and sort this out!! Any help, advice or views on this situation are most welcome!             

James Falla

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Re: settling an IVA
« Reply #1 on: Jun 10, 2013, 06:37:46 PM »
Hi there wittsy
 
I am not sure if you have been able to sort this out already however if you receive a windfall while you are in an IVA which is large enough to cover the entire debt then the IP will normally add both their fees and statutory interest at 8% calculated from the start date of the IVA.
 
The question about how much interest the creditors would add if you simply allowed the IVA to fail and then paid them directly is an interesting one. I have to say I am pretty sure that many of them would not actually add additional interest and you might well get away with paying the outstanding balances of what you owe.
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