IVA Help

LeeChappers

I’m currently 9 months into an IVA. The total amount of my IVA was £8,600 and I have paid £1,405 to date leaving £7,195.
My monthly payments are £145.

I have a few questions.

1) If I was to offer £7,195 for a full and final settlement would that be accepted? this is a potential gift from a friend.

2) I have just accepted a new job which means I will have an extra £1,100 per month extra. I understand 50% will have to be paid into my IVA, does that mean my IVA will finish early when I start paying the extra £550 per month?

sourcrates

A common mis-conception by those who have been unwittingly sold an IVA, is how they actually work.

For an 8k debt, a better solution was available to you.

However, we are, where we are, so how does your IVA actually work ?

Well it doesn't work like a reducing loan does, your actual debt, is only one aspect of what you now owe, you are responsible for the IP`s fee`s, these can total a few thousand pounds -

• A nominee’s fee
• Supervisor’s fees
• Costs/expenses

your liable for the upkeep and running cost of the bank account your IVA payments are paid into, also VAT, interest, and any other sundry costs your IP incurs.

So its likely your actual debt is now around the 10/12k mark, you would need to ask for a settlement figure to ascertain the exact amount they would require to settle.

An increase in salary and payments, doesn't always mean your IVA will end sooner, normally it just means your creditors get a bigger percentage of there debts back, however if you do pay back what is owed, in full, including all fee`s etc, than it could end sooner, yes.