Paying more into IVA than original debt?

moneymess123

Hi,
I need a bit of advice i’ve been in an IVA with DFD for just over three years, the original debt was £25,305 to date I have made payments totalling £12,310 and the remainder of payments will total £10,010 so I’ll pay in £22,360 over the course of the IVA. DFD contacted me recently asking to make PPI claims on my behalf which I allowed them to do and to date they have had offers totalling £8,529 (with several offers still to come). I understand that they class this as a ‘windfall’ and as such expect all of it to be paid into the IVA but this would mean that in total I’ll have paid in over £30K. Shouldnt this reduce either the length of the IVA or the repayments or can they really expect me to pay more into the IVA than the original debt?
Thanks.

FoggyBrain_2

If circumstances allow and you get windfalls, inheritances and the like you will be expected to pay 100% of your total original debt, plus DFGD's fees and possibly some interest charges. Once these are all met the IVA will cease, if before the predicted end date.

In this rare instance, yes, you will have paid more than the original debt ... but, in the meantime you have been protected by the IVA and you haven't been charged high interest rates ( which could add up to as much as the original debt again over 5 years ! ). So you will still come out on top.