Hi all I am in year three of my MY IVA.
I DID read that you could increase monthly contributions and finish finish the IVA early. I just wondered how this works if it is at all possible ?
Thanks
Unless the increased contributions mean you have repaid 100% of the original debt plus fees then the IVA will continue for the full term and any additional contributions increase the dividend to creditors.
Hi -- you can increase contributions, if you feel you have allowances to spare. You will, in any event, have to pay in around half of any overtime or bonus payments and all of any lottery wins, inheritances and the like. As well as this any PPI recovered will increase the "pot". Anything paid in this way will not allow the IVA to end early until you meet 100% of the original debt, plus fees and possible statutory interest.
What I would suggest, is that you make only your contractual payments and squirrel any surplus, your share of overtime and bonus payments, into a savings account. It might prove a useful contingency fund if anything breaks down, blows up or simply needs replacing during the life of the IVA.
Further on, you might have saved up a sum sufficient to make a full and final offer, based upon remaining payments x monthly amount. This could end the IVA early based upon the amount due under the terms of the IVA, rather than the full original debt etc.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thanks people. Clear now ! It's just I taught o had reason here that someone had done that and finished it early. Thanks for the clarification. And are you allowed a ssavings account in am IVA - NOT TTHAT HERE WOULD BE MUCH TO SQUIRREL INTO IT!
Usual advice applies -- don't apply to any financial institution you have a debt with. Co-Op will not open a savings account for us IVA'ers, but will open a second Cashminder account. A popular choice is the Yorkshire Building Society who do an instant access online account with an ATM card.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
You can end the IVA early if there are circumstances that occur and mean that you cannot continue to repay. We ended our IVA when I was medically retired by offering part of my lump sum to creditors.
