Hi everyone. I have been paying into my IVA now for almost two years (my how time flies when you're poor). The original agreement was for me to pay almost £7,000 into the IVA, with £13,000 being written off at £123.50 per month for 5 years(oh joy!). I now pay in £177.75 in per month- as my wage increases incrementally. I have paid off £2,700 off so far. This means that according to the original paperwork I have £4,300 left to pay. If I am paying at £177.75 currently- does this mean that I will pay off in 2 years (effectively 4 years)- or does that mean I just pay more than was agreed in the original paperwork if my payment has increased. Really confused :S
Your IVA will still run for five years but creditors will receive a higher return than they expected. Only if you repaid the debts in full plus costs and possibly interest would the IVA close early.
Hi Sammy - as Michael says it will still continue for 5 years. If during the final years you have any changes in circumstances the additional payments could put you in a better position to be able to persuade creditors to end the IVA early.
Try not to feel peeved that you are paying more to the IVA pot - it's still going to be a lot less than all the interest they could have added if you didn't have an IVA!
