Is the amount agreed in an IVA fixed?

[ordinary_world]

Hi,
This is probably a silly question but when an IVA is agreed, is the amount you pay back fixed?

So lets say you owe £100k and your creditors agree to an IVA with a dividend of 40p in the £ and IP fees of 10p in the £. Does this mean you will pay back £50k regardless of how well your circumstances improve? Am I right in assuming that the only thing to change would be duration rather than amount repayable?

Best



OW

- 'I wont cry for yesterday 'cause there's an ordinary world somehow I have to find...'

[coco]

Hi OW

If your circumstances change for the better in the duration of the IVA you would be required to up your dividend unforuntately. (Payrises, windfalls etc)

(I apologise for my keyboards poor spelling and grammar)
http://coco.blogs.iva.co.uk

[ordinary_world]

Many thanks Coco, I did think it was too good to be true![:)]

Best

OW

- 'I wont cry for yesterday 'cause there's an ordinary world somehow I have to find...'

[MelanieGiles]

Didn't we cover this in our recent meeting?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[ordinary_world]

We did Melanie and I do remember discussions about an increased income or windfall being consumed by the creditors....but with my memory being like a fish with a severe head injury, I couldnt remember whether both time and cost changed. Given what's been said, I think Jane's remembered correctly...and I probably wont hear the last of it now! [:D]

I think what was confusing for me was when some people have completed their IVAs early (before the originally agreed time period). I'm not thinking about my own situation per se (as there is 0.01% chance that I will come into money any time soon) just curious about the reasons why some are able to complete early and also what would happen if you hit the big time and became solvent within the IVA period (and could make the original contractual payments).

Best
Jon


OW

- 'I wont cry for yesterday 'cause there's an ordinary world somehow I have to find...'

[ordinary_world]

More thoughts about this.....and I'm sure my other half (Jane) has this wrong![:)]

Now, an ideal situation for creditors would be 100p/£ over 0 months (full repayment made immediately). Typically though, people who are solvent are able to pay 100p/£ over x months at £y per month (as per a credit agreement). So am I right in thinking that in an IVA the creditors are agreeing to a "minimum pence in the pound" that they're all willing to accept over a typical period of 60 months (or 48 months with equity release)?

If so, someone could only finish an IVA early if they were able to pay the original outstanding balance (e.g. because you inherited lump sum).

Is this right?

Best

OW

- 'I wont cry for yesterday 'cause there's an ordinary world somehow I have to find...'

[tracy.h]

Hi OW as far as iknow an inheritance is a windfall so you would pay 100% to iva so that you are paying as much back to your creditors as you can,if once you have settled your debt there is any over once interest is paid then that becomes yours,i will be corrected if wrong.

Tracy

[MelanieGiles]

I don't understand that last post OW - give me a ring in the office tomorrow and we can discuss off-line.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[ordinary_world]

Thanks Tracey, I think you're probably right about the windfall and IVA.

Melanie, apologies for the confusion, I'm not explaining myself well and will call tomorrow.

Best

OW

- 'I wont cry for yesterday 'cause there's an ordinary world somehow I have to find...'

[Oliver]

You will always have to pay your creditors to the best of your ability this can mean payements up to 100p in the pound plus your IP fees and possible Statutory Interest.

I'm sure Melanie will be able to clear everything up for you when you speak.



Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[Adam Davies]

Hi
I think that it,s worth remembering that you owe the full,original amount of your debt during an IVA and its only when its completed and your creditors have the final dividend that the remainder of your debt is written off.
Regards

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

[ordinary_world]

Many thanks for all of the comments, Melanie has reiterated her previous advice and all is clear now. Apologies for the confusion.

Best

OW

- 'I wont cry for yesterday 'cause there's an ordinary world somehow I have to find...'

[tracy.h]

Hi OW
Glad you got things sorted out but dont apoligise thats what this forum is for
Good luck with your iva keep posting even if just for a chat i know it gets quite nerve racking waiting for your creditors meeting

Tracy

[ordinary_world]

Many thanks Tracy - I'll keep you posted on progress.

Best

OW

- 'I wont cry for yesterday 'cause there's an ordinary world somehow I have to find...'