IVA almost paid off .. or so I thought

A question about : IVA almost paid off .. or so I thought

I'm in the final year of a personal IVA. Because I had a large PPI repayment from something I claimed before I took out the IVA, by the time the five years are up, I will have paid back almost all the large amount of money that went into the IVA, will be around Ј1,000 short of the total on the paperwork. I have already paid more than the amount of my 60 monthly payments due to the windfall of PPI and still have about nine payments to make.
On my last review I asked about this fact and was told it made no difference to them requiring equity from our property. This they won't get as I am 60 shortly and we still owe a lot of mortgage, so there's no way we will get an extension. So I am told that I will need to pay into the IVA for another year.
I believed that the amount of the IVA was what I needed to clear, not the fact they could potentially ask for Ј30k over and above this amount from equity in the house. This is academic, as they won't get it, but I will have paid around Ј10k over the amount agreed for the IVA after the six years is up.
Am I being naпve in thinking I was misled about the amount of the IVA? They have had quite a lot of other PPI payments too as I had to agree to an agency seeking those.
Is this right, never mind fair? I'm beginning to feel it's never going to end!

Best answers:

• Hi Lincsdebt
  The terms of an IVA should not allow the insolvency practitioner (IP) to claim an infinite amount from you - simply enough to fully satisfy the debts and the IP's fees (these may have been specified at the outset but may increase during the IVA's lifespan if the IP has had to carry out extra work not factored into the original invoice).
  If you are dissatisfied in any way with the IVA and the IP's handling of it, you are entitled to complain. You may want to start by simply seeking clarification of the IP's total costs. If this is not forthcoming or unclear, you should ask for details of the IP's authorising body - this is who any complaint would be escalated to if necessary.
  Dennis
  @natdebtline
• Thanks for your help, Dennis at National Debtline. Can you help to clarify what the total should be: on the IVA documents it says "Total Contribution over IVA Term" - is this the total I should be paying? There is an additional figure of some Ј14k of "Total Supervisory Fee". Is that additional to the total contribution or a part of it? The paperwork is not clear in this respect.
  I would not think there has been any extra work on my IVA for the IP, as all payments have been met on time and I have not contacted them other than when they have asked me to.
  Thanks for your help, it's appreciated
• Here is the website address for the Insolvency Practitioner's Association who handle complaints about IVA providers.
  www.insolvency-practitioners.org.uk
  Make sure you tell them everything thats happened; I had to report my IVA provider and they are investigating my complaint too!!
• If anyone does think they have a genuine grievance about any I.P. or I.P. firm, probably a better address is this one https://www.gov.uk/complain-about-in...y-practitioner
  Hope that helps
• longtermplanner has hit the nail on the head... I sspect you are confused.
  The MINIMUM amount you will pay on the IVA is your agreed payments (unless a reduction is agreed by the IP/creditors). The MAXIMUM you will repay is 100% of your debts included in the IVA plus the nominee and supervisor fees.
  What is your total debt included in the IVA? There should be a list of your creditors and the balances in your paperwork.
• Thanks for everyone's advice. I realised a while back that it was the minimum amount that is listed on the IVA document. I have adhered to the monthly payment, which was increased from its initial level as they got the figures wrong, and also paid another increase, some bonuses and the PPI payment from before the IVA. I have checked the figures in my proposal and after six years, I will have paid 100% of the debt. My question was why they could ask for Ј30k or so from my equity, when I won't owe that much. An academic question I realise, but I think that people should realise that the figure in the proposal is a minimum. This was never explained to me at any time. I have found being in an IVA a deeply unpleasant experience. It certainly isn't how it is portrayed in the media.
• I too went into an IVA misinformed. We thought our term was up as we could not re-mortgage due to credit scoring, however they extended our term for a further two years!! We have one year left now and they have asked for the yearly review. We are lucky that we haven't had to increase the monthly payments, however I feel they might try and get more in this last year. I really wish we had just gone bankrupt and gone into rented. The stress of it all has been pretty tough, along with the constant worry that my car will give up on me and no way of paying for repairs
  Too be honest, I must be one of the the only people who still cannot budget money!
• we too are in our last few months of our IVA having had it extended for 6 instead of 5 years .we had several successful PPI claims which totalled almost Ј20000 ,when we got our statement last year we had paid off Ј35000 of the Ј55000 original debt however when all the claims management companies fees were deducted what we had actually paid was only Ј15000 ! so somehow we have lost Ј20000 to them in fees ! I suppose we will also be asked to raise money from our house but as we only have 11 years remaining and owe a large sum anyway doubt very much that that will happen surely the claims management firms are overcharging