overpaying IVA

ChrisR86

Hi there,
I hope I can get some advise here as I am quite confused and frustrated with my current IVA situation.
I am currently finishing my 3rd year (out of 6) into IVA.
Our debt was just below £25K when we have signed the agreement and with £220 monthly payments at the time it gave us peace of mind and hope to being debt free at some stage. Our situation has improved after first 6 months and since then we have been paying roughly twice as much every month. We have just finished 3rd year and according to my calculations we have already paid £18K out of the £25K therefore I have decided to give a call to our IVA supervisor to find out what is the outstanding amount. They said that 100% of the debt without the interest is about £14K which with £18K already paid is £32K. Apart of that they provided another outstanding amount which is 100% of the debt plus statutory interest plus fees which is £20K which would be £38K including £18K already paid.
In both situation we would be paying either 125% or 150% of the initial debt.
Our situation has recently improved to the stage that monthly repayments will be increased to £690 a month(from £220 initial) and with 36 month still to go (£690 x 36 = £24840 + £18000 = £42840 ? is this even real?)The reason I have requested the remaining amount was due to receiving some refund and combining with some savings I might have about £10K which made me think that we might be able to pay the IVA early, but it seems like this is not enough and now paying this into IVA would not achieve anything.
Hope above makes sense.
Any advise would be appreciated.

National_Debtline

Hi Chris and welcome to the forum.


I'll just respond in general terms, as the crucial issue is the content of the terms and conditions of the specific IVA agreement you signed. As a general principle, in order to complete your obligations early and to be discharged from the IVA ahead of schedule, you will need to have paid 100% of the debts owed, plus any interest they elect to claim, plus the supervisor's fees. So you can indeed end up repaying significantly more than 100% of the original balance owed in some cases.


Periodic reviews should take place during an IVA to see whether contributions should increase, decrease or stay the same. I think it's worth asking your supervisor to hold one now to discuss a way ahead - ideally one that will allow you to complete your obligations sooner than originally envisaged.


The other thing to bear in mind is that the terms of most IVAs give the supervisor first claim on any assets you acquire, be they cash or otherwise. So any refunds/savings you come by may not be under your sole control until after your IVA has been formally completed.


Dennis
@natdebtline

Concerned75

Hi.
Just in answer to your question, mine has been occurring very similar. I am in year 4 and having looked at my case of what I've paid, to the amount to be paid off at the end of the term(£6,000) I think I will have overpaid, as I've paid at least £5k already.

Max_Maxwell

Let's cut to the chase here, you are clearly in a very comfortable place with your level of income and the ability to repay your IVA early. I would just get on with it and be less cavalier about announcing you have £10k of savings whilst in an IVA.

Good luck!