is it possible to end up paying more on an iva than you currently owe? e.g. if your disposable income increases radically? Or is the amount capped at how much is owed to the creditors at the start of the iva
You owe the total debts until your IVA is complete and at the final creditor meeting the creditors decide whether to write off anything still owing. So it is possible to pay 100% + fees and interest.
If your income radically increase the disposable income woiuld increase and this would be picked up at the annual reviews.
Last edited by Pandy on Mon Oct 11, 2010 7:05 am, edited 1 time in total.
If life is what you make it, I must have been in a strange mood when I made mine
Hi your IVA would conclude when you've paid 100% of the debt owing plus IP fees and any interest payable. All amounts owing at the onset of the IVA are owed throughout until the conclusion of the IVA which will be after the agree timescale within your proposal.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
Hi, as the other two have said, you will only ever pay back 100p/£ plus fees plus statutory interest (which is about 8%). The Iva would conclude early at this point rather than running to term.
You'll never pay back more than you owed at the start of the IVA. If your income increases, so will your payments - less any increase in expenditure.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
kallis3 wrote:
You'll never pay back more than you owed at the start of the IVA.
Unfortunately not the case- Pandy, Lesley and Broke get it right here stev0.
In the case that your income increases dramatically or you receive a significant windfall, you should be prepared to pay a maximum of your debts in full plus statutory interest and the fees of the arrangement.
But you will never be asked to increase your payments to something unaffordable.
What I meant was, you will never pay back more than your full debt to your creditors.
I worded it badly.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
