IVA Lump Sum Payment

Super_Ram

Morning All,

Just wondered if anyone knew anything on this. I currently have an IVA which was originally 13K and I have paid almost 3K off it now, so about 10 K on there. I will be upping my payments this month from 230 to nearly 500 a month, my original debt was 17K, so presume what I pay back will go up now.

What I am wondering is, what happens if i pay a Lump Sum off, the reason i say this is, we have a car, well in my GF name and we wont be needing it and can get around 7k for it, so if I want to use this to pay some of the IVA off, can i say it was a present from Family member, and if so, will it clear 8K off the 10 K left, leaving me with 3K, or will they take it off the original Debt of 17K which then minus the 3K already paid and this 7K, leaves 7K left.

Sorry for babbling, any ideas appreciated

Super_Ram

Has anyone got any ideas on this at all or similar posts I could loook at

lexie2005

Hi there, sorry I didn't see your post yesterday to reply! I am pretty sure they will use the actual debt amout of £17,000. I know that if you come in to an inheritence then they take the full debt amount so I would imagine it will be the same......

Super_Ram

Cheers lexie2005,

Only reason I am asking is, I have learnt alot about IVA since I have been in one, and although i believe i was misold mine as have no assets, i am going to see it out and end it as quickly as possible.

The only grey area that noone seems to know on is the amount you pay back. I mean I owed 17K, then went into IVA and debt including there fees came down to 13K.

I have paid off 3K so far which most of that will be there fees i presume, so have 10K left on there.

Now my payments were 230 a month and am looking to up these to 4/500 a month and have 4 years left on the IVA, so that will be 48 payments of say the average of 450 which is 21600 so well above what i originally owed, so my IVA therefore should finish well before the 5 Years, as if I go on original Debt of 17K, plus there fees of 3K thats 20K. I have already paid 3K, so its down to 17K again and going on paying 450 a month, it would take me 37 months to pay it off which is another 3 Years.

Is this correct, I know an IVA is there to help, but at this rate, ill be paying back my Original Debt and there fees on top, so more than I originally owed which seems pointless, which may be my fault for going into IVA too soon, but talk about preying on the vunerable

Any Ideas on this or am I talking a load if bull on my figures and how an IVA works

DebtFreeDan

Not sure this is the best advice and possible quite risky but how will the IVA company know you've gained £7k by selling your car?

Don't mention this to them, sell the car and put the money in a separate account (maybe in your girlfriend's name) and continue to make your payments as normal.

Dan