www.iva.co.uk

Hello,

I may be getting a critical illness payout soon. If I do, this would be just over £82000, enough to clear my mortgage.

My IVA started in May 2018 and my total debt was around £32000. My payments have remained at £238 per month.

Does anyone have any idea of the probable amount I'd need to pay back? I have read conflicting information in regards to clearing the total debt with some saying the whole original amount including the IP fees and others saying this including interest at 8% PA.

I am by no means savvy at all! I have done several calculations with one figure in excess of £50000 :0

needless to say, I am keen to pay but I really would like to clear off a good chunk of mortgage if I get said payment.

My IVA is with creditfix if this helps.

Kind regards,

Sarah

Statutory interest is generally included in full settlements, so you would be looking at paying back the full original debt, IP's fees (commonly around £1750 Nominees fees and 15% of payments for Supervisors fees ( although CF do charge more in many cases). The statutory interest, if included, is simple interest at 8% based on the daily reducing balance of debt remaining --- some arrangements do exclude this liability, but more often not.

CF appear to be one of the few firms willing to actually give you a settlement figure, so you could have a chat with them, but ensure you get the reply in writing -- they are also prone to changing their tune.

I suspect about c£40k.

Eek!! well, at least it gives me saving room to try and clear some more of my mortgage

I shall get a figure and update.

Thank you both

I got a figure from creditfix via email along with a PDF of a breakdown of all costs involved. The total comes to £38,674.75

Not as bad I thought it could have been to be fair. it looks like they would not be charging the 8% per annum interest of the overall debt for the remaining potential years which is fabulous.

Fingers crossed I get the insurance payout and I'll update on how paying it off goes.

Very close to my estimate!

You could ask creditors to waive their right to interest but the IPs often charge £500 per variation meeting so it might not be cost effective.