Will IVA end once original amount paid?

sezzie_6

I am currently 2 and half years into an IVA. It started off as a 5 year agreement to repay 12,600 at 210 pcm for 60 months. After my first review my payments increased to 236 pcm and after my second review I am now paying 379 pcm. I also successfully reclaimed some PPI which also went to my IVA. My question is will my IVA end once I have paid off 12,600 or do I remain in an IVA for 5 years as agreed?
I am lucky that my circumstances have changed dramatically since entering into my IVA and I am now in a position to pay a lot more back that I originally planned for and I am hoping this goes in my favour!
Thanks in advance for any help/advice.

milliemonster

What was the amount of the original debt you owed?, your iva would only finish once the full amount of original debt plus fees is repaid, not just what was agreed at the meeting

sezzie_6

I owed £15,626 after a meeting between my insolvency firm and creditors an amount of £12,600 was agreed. With my PPI refund I have paid nearly £11,000 so I was under the impression that I only owed £1,600 now? Or do I have to continue repayments until I pay back £15626,00?

Foxy-Stoat_3

You should ask your IP.

Take a look at the last few annual statements to see how much the IP fees are.

FiatFan_2

From my understanding of additional payments it very much sounds like you will repay your debt in full within the iva period.

For example, if your IP has charged about £2k in fees, then total debt would be £17626 say. If you've repaid £11k in 30 months then I'd expect you'd have about 18 more repayments to make (6626/379) and end your iva a year early having repaid in full.

The only trouble I could foresee is, if you can repay in full they may then add the 8% statutory interest on and drag it out a little further.

Just my understanding whether it's right or wrong

milliemonster

sezzie_6 wrote: »

I owed £15,626 after a meeting between my insolvency firm and creditors an amount of £12,600 was agreed. With my PPI refund I have paid nearly £11,000 so I was under the impression that I only owed £1,600 now? Or do I have to continue repayments until I pay back £15626,00?

It is highly likely that fees will add another £5k to the 12k that was agreed so it will be more than £15,626 you would have to pay back if your iva was to finish early, an iva is for the full term unless you repay your original debt PLUS fees within the 5 year term then it will end early, otherwise you just increase the dividend repaid to your creditors, remember the whole point of an iva is to pay back as much as you can of the original debt that you owe based on affordability, not on what was agreed at the start, anything remaining at the end of the 5 year term is written off, until then, you still owe the full amount