Advice regards what to do with cash

Legacy_user

Hi Everyone,

I am currently in an IVA. I have just gotten an new contract with a new company and I am making more than 2.5x what I was at my previous job.

Now I am almost two years into my IVA. My IVA is only small (sub 20k) and on reflection it was a super bad idea. However....

The amount I am paying V the amount that is owed leaves only 1K difference (ie I am paying the amount of the debts in full, minus 1k)

Now having large amounts go into my bank account aint gonna look too clever.

The problem is that I am quite happy paying my sum each month. At the end of the IVA they are pretty much fully paid. Can they force me to give up more cash to finish it sooner ? I will also need some money for training (skilling up in certain areas) and dealing with down time between contracts.

I could potentially offer 65% for F&F

The only other thing I thought of was giving them the money, in cash, now, the amount that they wanted from a remortgage. On the understanding there will be no remortgage in year 4. It will also save them the fees of valuation etc

The long and short of it is that I dont want to end up giving them all my disposable income from this new job. Ie it would be nice to be able to help the student wife with her debts.

Any advice appreciated

13000

debtinfo

You need to look at what your IVA proprosal says and then speak to the supervisor, you look to be in a good position as you should be able to pay it off sooner. The total you will pay should be the full debt plus interest at 8% per year plus the IVA costs, obviously the quicker you pay it the cheaper it will be

althas

Talk to your IP. They will advise what you need to do

Charco_2

On reflection it may have been a bad idea, but at the time did it feel right?

If we all had crystal balls we'd never make a mistake but we've got to move on and deal with your situation now. Congratualtions on your new contract and improved pay...

Basically, you will be required to pay in as much as you can afford for the next three years, up to the value of your debts... (which, as stated above, will include 8% interest per year and your IPs fees).

Your IP earned an initiail fee for proposing your IVA and now also earns a fee for every year he supervises your IVA. It will likely tell you how much this is in your IVA Paperwork - something around £500 a year is usual.

So since you are now earning much more than you were before it is likely you are going to have to increase your contributions accordingly. Since you're already going to be paying back all but £1000 of your debt I would imagine it's just going to be better for you to pay as much as you can and end your IVA early with all debts paid... You'll have to do a new I&E with your IP!

The alternative would be to alter your I&E - ok you're earning much more now but some of your costs have risen also sort of argument - but you're still going to dramatically increase your monthly contributions...

If you posted a few figures up here it might help to make the examples more meaningful to you.

- Total debt at start of IVA
- Income
- Surplus Currently
- New Income