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F E Smith
F E Smith, Advocate
Category: Law
Satisfied Customers: 10257
Experience:  I have been practising for 30 years.
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I have been in an Iva 5 years, the first year I was

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I have been in an Iva for over 5 years, the first year I was in I earned more than I paid so they had a meeting with the creditors to allow my payments to be extended by a further 16 months followed by 3 months housekeeping. My final payment is due in August, but they are now asking for my payslips for this last year and bank statements also. I was under the understanding that I had extended payment term not Iva and am now concerned that i am going to have more to pay. Is this right?
Do you mean that in the first year you earned less which is why the payments were extended?Final payment in respect of the 5 years of final payment in respect of the 5 years +16 months +3 months is due in August?In August, will you have paid all money due under the agreement?Why don’t you want to give them payslips and bank statements? You are under a duty to cooperate with the administrator and there is no way around that.
Customer: replied 1 year ago.
In the first year I was paying £200/month as requested, but I should have paid them more as I had earned more, and this was only noticed by them in my final year, which I did not have the funds at that time to pay in one payment hence the extension, but I was under the impression that once I had paid these payments that my Iva would be over. In August this year I would have been in my Iva for 6years 4months, and am now concerned that once I give them this years payslips and bank statements that they are going to expect more payments and hence another extension. I have the paperwork they need ready to post to them on Monday, but I was under the impression that it was a 5 year term, and was hoping that it would have been finished by now. I ended up in an IVA due to my wife leaving the marital home and me in debt, and thought at the time this was the best thing for me to do, but wish I had just gone a debt management plan instead.
An IVA does not have to be for 5 years. I have heard of 6 and 7 years and one of 17 years but I don’t know how accurate that 17 years is. Provided the debtor has cooperated with the supervisor and been open and honest with information with regard to income, once it reaches the end of its time, and the certificate of completion is obtained, that is the end of it. It cannot be extended. However until that certificate of completion is obtained it can still be extended and there is no reason why it could not be extended again depending on the circumstances. All the supervisor is interested in is maximising the payment to creditors
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Customer: replied 1 year ago.
Thank you for explaining this to me, the way it was said to me was that it was a 60month term. Hopefully after I have sent the paperwork in I will be able to pay if they request more money and complete my Iva from there.