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Posted: Fri Mar 06, 2015 3:09 pm
by Tx1pete
If you pay off IVA early , say after 2 years, how many years of 8% statutory interest are added to final payment figure?
Posted: Fri Mar 06, 2015 3:10 pm
by lifenoteasy
Are you paying off everything or offering a full and final settlement - they are 2 different things.
Posted: Fri Mar 06, 2015 3:14 pm
by Tx1pete
A full and final
Posted: Fri Mar 06, 2015 3:27 pm
by lifenoteasy
Statutory interest is unlikely to be added - the f&f is really a way of finishing the IVA whilst reducing the risk to creditors.
Posted: Fri Mar 06, 2015 4:56 pm
by Foggy
A full and final is based upon the amount you offer and nothing is added. Statutory interest only kicks in in the event that you manage, one way or another, to pay 100% of the original debt. Often this liability can be excluded at the outset or by variation later.
For interest it is calculated at 8% simple on the reducing balance over the term of the arrangement.