www.iva.co.uk

Hi there,
I was just thinkin and came up with a question. I hope someone can give me an answer. I've been in my IVA since January this year but I am doing extremely well paying extra funds into it because of overtime and bonuses. My IVA states that I have to pay about 30 pence in the pound for 5 years, with the possibility of a 6th year. Now if this continues, and I hope it does, then they should be getting about 90+ pence to the pound by the end of the 5th year. Does this mean that because they have had a good return over 5 years that the 6th year will not be necessary?. Or will they expect 100 pence in the pound hence the IVA continuing for a 6th year?

Hi, do you have the equity clause? Your IVA won't finish early unless you've paid it in full plus possible interest and IP fees.

Could you now make all your regular payments back to creditors?

Creditors will expect to return as much as you can afford,if that ends up being 100p/£ then thats what they will get.

When you say the possibility of a 6th year is this if you fail to reach a certain dividend or is it in lieu of equity if any is available?

Paul

I thought interest stopped whilst in an IVA? I thought that was a benefit in taking an IVA over a DMP?
And yes the equity clause is in my IVA. Thanks for the reply. So for example my debts were 24k, I might end up paying back 30k? Because of IP fees and interest?

If I paid back 100 pence in the pound back by the end of the 5th year would my IVA end?

If by the end of year 5 you had paid 100p in the pound of your debts plus fees plus statutory interest(different to the interest charged per month so in effect interest is frozen),then your iva would complete.

Paul

Meant to add that statutory interest is charged at 8% of all debts,and it should be mentioned in your IVA paperwork if it applies to your own case.

Paul

So in effect does that mean I will pay 108 pence in the pound because of the 8% interest?. Sorry for all the questions but I'm a little bit confused! Then add IP fees?

That's one of the plus points of my proposal ... where I missed out on the 10% overtime disregard, I gain on the statutory interest, as it has been specifically excluded. Which I might well benefit from.