I am a teacher. If I take an IVA out and as an example my initial payment is: £300pm then it comes up to my annual review and as a teacher I get a salary increase. Will the IVA company increase my payment, or will they consider that the cost of living has increased and allow me to keep the increase.
I am also concerned that if I pay £300pm for 60 payments that totals: £18,000 and if they increase that amount after the first year and every year after that by £100 I would pay a total of £30000 when my debts only total £27000...That's more than I owe...
If I get a salary increase such as I do as a teacher can that reduce the amount of years that I pay or will it remain 60 months.
Can anybody give me a clear idea whether this is a viable option?
You're better off talking to a few experts. I used www.iva.com on the recommendation of this forum. When you get an increase it can be swallowed up by the cost of living increase, especially fuel! You would set up the IVA and your IP fees are added to the agreed repayment sum (they take their fees out of the first payments - agreed with creditors in advance). Have a look at the website and once oyu have asked 2 or 3 different companies you will have a better idea on the best solution.
Main thing with an IVA is it is based on your disposible income after all your essential stuff is paid. Your payments may start at a certain level - but may increase if your income does. You need to check but usually you are able to keep a percentage of wages rises - due to living costs increasing.
Dont forget you will alway owe the full amount of debt+fees+interest until the IVA is finished. you IVA wont finish early unless you pay back 100% +fees etc
Last edited by ginger3232 on Thu May 05, 2011 11:33 am, edited 1 time in total.
I echo the advice above - do speak to a professional via the link posted above. The advice is free and impartial.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I have quite a few teachers in IVAs with my firm, and it is rare to see payments being increased much at all - especially if you work in the public sector where pay-rises at the moment are probably lower than the cost of living rises you refer to.
When we review our clients income and expenditure annually, we take into account all increases in expenditure - and whilst increases cannot be ruled out, you still get the benefit of full interest freeze whilst in the IVA even if you do end up paying a little more than you originally owed, plus you get the benefit of full legal protection away from your creditors.
Do take some advice about all options before you take the plunge, and a licensed insolvency practitione will be able to give you advice on each one.
