1)If you are in an IVA agreement what happens if your circumstances change for the better?
I have 32K debt and (if accepted) my IVA will put between £350 - £400 towards my debt. eg 21k. Now I work in Sales and the reason i am having to consider this route is that my commission has been very badly affected by poor sales figures due to the recession. I am (optimistically) hoping these sales to increase again back to their normal levels.
2) If i have been assessed on a basic salary then surely all of my commission for the next 5 years would be allocated against my debt. (conservatively could be estimated at an additional £500 for the last 4 years of the IVA) thats another 24k - will the IVA end when all the debt is paid or will it go on regardless for the 5 years even if i end up paying over 40k to clear 32k?
3)Could they then even after that reasess my LTV on my mortgage?
Hi and welcome
If your IVA is based on your basic pay only then you should only have to pay over 50% of any commission, however this will be dependent on the terms and conditions of your actual IVA.
You can only repay the full original debt and any IP fees so once you have reached this point your IVA will finish and you will not have to release ant equity.
Melanie can confirm if statutory intertest will be added ontop of IP fees if the full debt is met, I think the answer is that no interest will be added
Regards
You are generally allowed to keep 10% of your basic salary each month, and then split the difference on a 50/50 basis - so creditors will actually allow you to retain quite a chunk of your additional earnings during an IVA, and interest does not continue to be charged.
Statutory interest is generally no longer applied Andy, particularly with protocol based IVAs.
