Can an IVA be cancelled due to too much salary

[Carra_Rud]

Hi,

We entered into an iva back in March and since then our payment has increased due to a pay rise in June. Now my wife has been given a promotion with an extra 10k a year included. Clearly our payment will increase again so my question is if the payment per month we pay into the iva over the remaining period of it equals to over what we owed creditors on the initial report, could our iva be cancelled and we go back to owing each individual company any outstanding balances and interest?

Regards

[Foggy]

Once you have paid the full original debt, plus fees and possible statutory interest the IVA will end if this is before the anticipated end date.

You can, if you so wish, allow the IVA to fail -- it will not be cancelled. In this scenario your creditors will add back 'lost' interest and possible charges and pursue the debt as they see fit --- you will probably have to pay back more than you originally owed, even if they all co-operate. What you have paid so far will be lost to fees.

[Carra_Rud]

Once you have paid the full original debt, plus fees and possible statutory interest the IVA will end if this is before the anticipated end date.

You can, if you so wish, allow the IVA to fail -- it will not be cancelled. In this scenario your creditors will add back 'lost' interest and possible charges and pursue the debt as they see fit --- you will probably have to pay back more than you originally owed, even if they all co-operate. What you have paid so far will be lost to fees.

Clearly, failing our iva would make us worse off in the long run, so as long as the creditors can't say you can pay us back more if you weren't in iva, we should stay as we are, correct?

[Foggy]

Once you have paid the full original debt, plus fees and possible statutory interest the IVA will end if this is before the anticipated end date.

You can, if you so wish, allow the IVA to fail -- it will not be cancelled. In this scenario your creditors will add back 'lost' interest and possible charges and pursue the debt as they see fit --- you will probably have to pay back more than you originally owed, even if they all co-operate. What you have paid so far will be lost to fees.

Clearly, failing our iva would make us worse off in the long run, so as long as the creditors can't say you can pay us back more if you weren't in iva, we should stay as we are, correct?

Correct. At the end of the day they are going to get more than they signed up for and might even get it earlier than expected, so they will be benefitting anyway.

[Carra_Rud]

Once you have paid the full original debt, plus fees and possible statutory interest the IVA will end if this is before the anticipated end date.

You can, if you so wish, allow the IVA to fail -- it will not be cancelled. In this scenario your creditors will add back 'lost' interest and possible charges and pursue the debt as they see fit --- you will probably have to pay back more than you originally owed, even if they all co-operate. What you have paid so far will be lost to fees.

Clearly, failing our iva would make us worse off in the long run, so as long as the creditors can't say you can pay us back more if you weren't in iva, we should stay as we are, correct?

Correct. At the end of the day they are going to get more than they signed up for and might even get it earlier than expected, so they will be benefitting anyway.

[luluj]

Great increase and one at the of your iva you will benefit from fully, until you will get to enjoy your share of the pay rise ....