Overpaying IVA

Kickerball01

My IVA is due to finish in 9 months time.

When I took out the IVA the debits were 17k.  After the normal income & expenditure review it was established I could afford to repay 11K which was agreed by the debitors.

The IVA company (Creditfix)  applied for some PPI's on my behalf and they have received approx 4k back.  So now,  Creditfix have received an additional 4k shouldnt the 11k Im paying back actually reduce by 4k?

Otherwise I've virtually paid back the entire 17k debt.

gd55

Them's the rules unfortunately. It'll be in the Ts&Cs somewhere that they make PPI claims on your behalf but you don't get the money and it doesn't reduce your payment amounts/length of agreement.

The amount paid back to an IVA agreement is not necessarily fixed or in any way aligned to what you owed at the start. This is because your payments can change if you have a change in circumstances such as a salary increase. I believe you can actually end up paying more than you owed if you get promoted for example, as you are tied to paying for 5 years.

Grumpelstiltskin

£17000 was a very low amount to enter an IVA for, did you receive advice from a debt charity or did you jump straight in to an IVA company?

sourcrates

That`s the thing with IVA`s, big headlines about writing off 85% of your debt, doesn't always happen that way.

If your debts were 17k, and you have the means to repay that 17k, then that`s what you will pay, plus the IVA fees and expenses obviously.

A certain percentage of your debt is only written off if you don`t have the means to pay it, the PPI refunds made up the difference, that`s how it works unfortunately.

fatbelly

Yes, it's quite possible for an IVA to mean that you repay more than the debt value