www.iva.co.uk

Hi I am in second year of my IVA. My IVA instalment is £295 which was based on my income of £950 per month but now my income got increased to £1500. If I make extra payments will that help to finish my IVA early.
Full amount that I have to pay through my IVA is £17700 in five years.
Many Thanks

Hi,

The only way you will finish your IVA early is if you can get a lump sum to do a full and final, or you pay back 100p in the pound (plus fees) to the IVA.

You will always owe the full amount to your creditors until the IVA is completed.

You will have to inform your IP of the increase in pay so that your payments can be adjusted.

What was the debt to start with??

£600 monthly net pay increase I assume is is a big increase, sorry but unless your expenditure also goes up to £450 the creditors will take it all.

I had a recent 2nd review and not going into details,I judged that IPs will only allow a minimum of surplus...maybe be £150...an estimate.

Whilst I didn't have that much payrise last year, my IP took nothing from me at all, even from my hubbys pension rise.

I am sure they will be allowed to keep some of this as expenditure will have risen as well.

Thanks for all the replies I am self employed and most of the payments I get for my work are cash.
I want my IVA to finish early and that's the reason I want to make extra payments so my IVA finish early.
If extra payments not going to finish my IVA early I rather increase my expenses.
Many Thanks to All

Hi
If you pay most of the increase into your IVA it will finish early. If you pay 800 pounds for two more years you will have paid in approx 23k, this will cover your initial debt and IP fees.
Regards

you need to justify your increase in expenses ,good luck and congratulations with your payrise.

Hi
Ronald makes a very good point
Regards

Only IPs can authorise the increase in iva payment, and just because you have a surplus above your expenditure the extra is often not added into the IVA. I had a surplus[thank you] and was never approached with any incentives in paying that in to complete the IVA earlier.

IVA payment obligations aren't really considered like a HP or home loan agreements.The IP will get their fees as agreed over the five years, credit files remain in default for the duration. Its best to be glad to allow to keep the surplus.....any dividend short fall will be dealt with additional months of an IVA rather than top ups. A max of five months as in my case.

But of course if you have enough surplus and can afford to pay it across, that is up to you. I wish I could but ours just about covers the increase in shopping and petrol costs.

Your IVA will only be completed earlier if you do a full and final, or if you pay back 100p in the pound plus fees.

I'd like to think I could finish mine early, not bothered about it being on my record for six years, the extra disposable income would be great.

I think only a Final settlement truely settles an IVA early. As the surplus allowed to be kept is minimal, put it into a savings account and earn interest.

If you can pay 100p in the pound through having worked overtime, or had bonuses or big payrises, then it will be paid off early.

I would enjoy having the extra money per month to do as I wish with and know that other than my mortgage I was debt free.

My hubby and I had the long drive to Manchester today and we've been in dreamland of how much income we'll have post IVA and how we'll spend it!!

Ad others have said once you've paid the total, fees and interest IVA will conclude. I wish you well x

Hi
If you have repaid the total debt plus IP fees then an IVA will end early, you can't pay more than you originally owed, apart from fees.
An IP will review income and expenditure each year and is duty bound to increase payments if there is sufficient surplus
Regards