Not updated my IVA details

brownieblade

Hi there. Ive got a few IVA questions. This is the situation.

I've got an iva for approximately £25,000, and currently paying back £200 a month for 6 years (so there is no equity release in the house where I'm still on the mortgage where my ex-wife and young son live.

I've not had anything back for some time from the IVA company I'm with, and during that time I have had a substantial pay rise at work, and also my outgoings are considerably less. I estimate that I have around £800 per month extra disposable income now.

I know that under the terms of my IVA I will be liable for paying a lot more per month, but at the minute I'm saving a large chunk of what I've been getting extra.

1.
Would the IVA company be able to take the lot, and take over the amount of my original debt that I entered in to the IVA with, or is there a limit to how much they can take?

2. I've also got some money saved up now towards the final payment of a leasehold car. The final payment will be £4k, and is due next April and I have around £3k saved up for the final payment. Would the IVA company be able to demand that money from me before I pay the car off

3. Should I be able to keep saving what I'm earning extra at the minute, and I estimate that I would be able to save £10k a year whilst still living relatively frugally would the IVA be able to accept a final settlement at a percentage of the original debt, or the full debt?

4. Would an early settlement impact on my credit file, especially as ideally I would be out of my IVA in 2 years and looking to have a substantial deposit saved up for a mortgage in 4 years.

My situation financially has improved massively over the last year, and now I just want to be able to able to afford to move on from my previous financial woes and be able to have a settled future.

Foxy-Stoat_3

Normally if you earn over what you stated at your proposal stage or last annual review, the IP will ask for 50% of the extra.

Your IVA payment will normally be what ever is left from your wages less your living costs leaving you less than £100. If you saying you will be able to save around £800 a month, expect your IVA payments to jump up at next review.

If you continue you IVA at this level then your total payments will exceed your original debt.

How have you managed to save £3000 while on an IVA? You should only be left with a minimum amount once your monthly bills have been paid.

You may be able to make an offer of F&F but I wouldn't say its your money though, as your not supposed to have pots of money while on a IVA. Speak to your IP about it.

Your credit file will be suitably destroyed until 6 years after taking out the IVA, even if you paid back everything you owe early.

Vikipollard

How long is it since you heard from your IP? You should have to provide details of Income & Expenditure at least once a year for review - is that about due now?

Continue to save the money, but expect to lose half of it when your review is done based on the 50/50 calculation. I had to increase my payments to cover what I owed in increased contributions because I thought it only got changed once a year. Naivety on my part.

You should also expect to pay a significant increase in contributions too. You may end up paying back more than the total you owed at the beginning, but remember that figure would have had huge amounts of interest added on top over the time you've been paying if you hadn't been in the IVA so it's a moot point whether it's wrong to pay more than the headline figure. Over the course of my 6-year IVA my payments rose from 208 to 364 due to pay rises and job changes, so I actually paid back slightly over what I owed (hundreds, not thousands).

As for being able to save in an IVA, well I did too! I made economies and changed how I did things to build up an emergency fund which at the start was £90/month, but was anything up to £400/month by year six. And boy did we need that money at times, when a huge vets bill came in or the car needed work. You're given standard allowances for things. If they aren't things you use, why shouldn't you be able to save that money?

I know it's different with a DRO, where there is a specific amount you can have left over, but if you can live on less than they allow in an IVA, then why not.