Hello.
I am about to enter into an IVA, my unsecured debts are 28194, and over the course of the IVA I will pay back 27120, obviously the IVA company is taken a chunk of that for charges, so I will actually only be paying 67p in the pound, is that any good.
But what I would really like to know, when my IVA is nearing completion do I need to raise 28194 - 27120 = £1074, or do I also become liable for the charges. which are around £8000. so in total would I need to raise £9074.
Once you enter into an IVA then all interest and charges cease. Your IVA will run for 5/6 years depending upon your individual proposal and whether or not you have your own property.
Once the IVA is finished then all debts are written off.
You will be expected to pay fees to the IP company which will come out of your monthly payment and will have been agreed by your creditors.
67p in the pound is a good return.
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
Which company are you using Andrew? They should explain all of this to you.
Hope it all goes ok and keep posting to let us know how you get on.
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
As things stand at the moment, you will pay back 27120 and the balance will be written off. If you have a ay rise or a lottery win in between times you might even pay back more (up to 100% lus fees) but you will also be saving 5 years interest charges.
67p in the £ is an excellent dividend.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
If you have a equity release clause,then you might have to pay a extra 12 months payments,based on your figures if you are paying £450 a month will equate to another £5400.
Have you considered the debt management plan option ? You would think your creditors would prefer this route as they would have their total debt repaid over a similar time scale as the IVA.
If the IVA is accepted I think you will find that your IP fees will be reduced by your creditors and will not be anywhere near 8k
I am using Freeman Jones, to be honest they have explained it to me, but it does sometimes feel as though I am talking to a salesman, I am just slightly confused about the charges and the final amount that I would have to release from my mortgage, if it was £1074 then I would try and save that during the 5 years of the IVA, and then clear the balance at the end.
It is reassuring to get advice from people that have been through this already.
All charges will come out of your agreed monthly payments and will be agreed by your creditors. It is unlikely that you will be able to remortgage, due to the IVA on your credit record, so expect a six year IVA.
Take a second or even third opinion from another company/expert before pressing that go button
