lump sum?

[Red]

Can someone help me with the following example:

I have £50,000 worth of debt
50% of debt i written off by creditors through IVA
IVA is set up for me to make repayments over 5 years to clear the £25,000.

If, for example after 2 years i come into some money enabling me to clear the balance of the agreed 25,000, would the IVA been finished or would i be expected to continue making payments to clear the full original £50,000?

[Aaron]

Hi, The lump sum payment would have to come from a third party I believe otherwise you might have to still continue paying in over the term. I think I read somewhere that it is possible to pay in 100% of your total debt and possible something like 8% interest....i'll try to find out where I read this and clarify.

[Aaron]

Ah ha....I asked the question to one of the debt companies and this is what they told me....

"The source of the lump sum payment would need to be declared e.g. third party funds, inheritance etc. Inheritance, lottery win etc would be classed as a windfall and could be in addition to the contributions you have agreed to make and not in place of. If you do come into additional funds during the term of the IVA you are obliged to declare this to the Supervisor and pay the funds into the IVA for the benefit of creditors.

If the amount of funds exceeds the total debt due to creditors, plus our fees, then creditors could expect you to pay statutory interest of 8% per annum from the date of the approval of the IVA"

[Red]

Thanks for your help Aaron.

[neverending]

Hi
just to add that the debt is not written off until the IVA is completed,so technically you still owe your debt throughout the five years.
regards