Final payment total clear-up question..

Devon_Sailor

Good afternoon all,
Been a little while since I last posted due to work commitments, but my wife and I are squaring up to our Creditors Meeting on 19 Apr, so fingers crossed.

My qestion relates to completion terms as there seems as from reading posts on here, versus what my IP is saying, the two do not tally.

So, suggesting cred meeting is completed and it is agreed for example, that I pay back £30k off a £60k debt over the 5 years.

From some posters, it would seem that if yor circumstances change, or you overpay monthly, you can wipe off the figure slightly early and get your completion certificate before the 5 year mark (in a similar way to overpaying a loan or mortgage).

However, I mentioned this to my IP and they stated categorically that it DIDNT work like that, and I would pay for the full 5 years, whatever payments i made.

I onbly mention this because I am getting a 6-month period of overtime payments at the end of the year, and after giving them my 50% bonus each month, I am wondering if it is better to hoard it and try and save up for a Full and Final offer later down the line, or overpay and knock a few months off??

Regards,

DS

paulmx3

whatever return to the £ the creditors agree to at the creditors meeting is only a minimum to be paid back,this amount is based on the income and expenditure form you will have filled in.

you will still owe the full outstanding debt that you origonally owed before the creditors meeting for the full five year term and any extra money you earn depending on your proposal,most say 50% of overtime earned after the initial 10% of overtime.

any bonuses also fall into this catagory,again depending on the wording of your proposal.

if you earn enough to pay back 100% of the origonal debt..plus ip fees then your iva will conclude.

in many cases if you are lucky enough to have a windfall big enough to clear the debt,the origonal debt,plus ip fee,plus interest may be payable.

to make a full and final offer part way through your iva would not in many cases be able to be payed by the person in the iva due to the fact most extra monies would be accounted for in the anual review of your income and expenditure,therefor in most cases full and finals normal come from an outside source,say family or friends and the source has to be proven.

FoggyBrain_2

In a nutshell -- any overpayments made during the IVA will merely increase the dividend to the creditors. To finish early you have to make a full and final settlement with funds from a third party (usually a generous friend or relative). You can supplement the final offer with your 50% shares of overtime, bonus payments etc., if you have squirelled them away.

Usually a F&F has to be backed up by some reason why the creditors should consider it ---- loss of income for one reason or another, failing health.