Confused - can somebody help.

backhoe

I an currently having the proposal drawn up for an IVA.

There are still a few tweaks that need doing, however the monthly payment at the moment, spread over the 60 months totals more than what i owe (plus charges). Is this correct? Does it mean the IVA ends once the total is paid (early in this case).

WIll be getting a call back later on today but was hoping some of you lovely people would be able to help too.

Thanks

debtinfo

The total you should pay is the whole debt plus 8% statutory interest per year plus the nominees fee plus the supervisors fee. If you can pay the full amount of in 5 years then you want to be looking for a company that charges the lowest possible fees, look closely at your proposal

Charco_2

Its an anomaly ok but could you put the figures down just to clarify (total debts and proposed monthly payment... also who are you with for the IVA?)

So, it's not normal but it doesn't necessarily mean it's wrong. The vast majority of people go into an IVA to make debts more manageable and do end up paying back LESS than the amount of debt but even if you're paying more it can be alright (provided you're insolvent now!)

Also bear in mind that while you're paying back more than the sum of the debts, you might not be paying back more than the debts+interest. Also, if you're not managing to maintain the repayments demanded of you now then there would also be charges that would mean your debt outside the IVA would be larger in five years time (without the IVA)

(got rambly, but i hope you know what i mean)

backhoe

Yes Charco thanks a million i do know what you mean. Thanks debtinfo as well. It all makes a lot more sense now.

However I do have another question (just want to get it all right in my head before she phones). Part of the proposal will be that if i earn any overtime, recieve inheritance etc, some of that monies goes towards the IVA (and quite rightly, i borrowed, i want to pay back). Again this would take me over what I owe with charges etc, so could it potentially finish early and mean not have to do anything in the 54th month re the mortgage. Sorry if i'm not making a lot of sense. lol

debtinfo

yes once you have paid back everything in my first post then the IVA will finish as the debt has been paid in full