Overpayment

[jampotfairy]

Hello

I have recently set up an IVA and my monthly payment is £244. I have recently applied for a new job and the salary increase would mean that I am able to increase my monthly payment to £500 a month but as I owe 18500 in total that would mean that over the remaining months I would be overpaying what I owe by about £10000. Does anyone know what happens in this situation?

Thanks
[?]

[Oliver]

The most you will ever have to pay in an IVA is 100% of the money owed plus your IP costs and possible statutory interest.

Are there any extra expenses that you will incur with the new job which you could offset against the increase?



Best Regards
Oliver

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

[jampotfairy]

There will be extra travel involved but not enough to offset a great deal of the increase. Everything else is as I set it up orginally.

[MelanieGiles]

This is a little unfortunate for you, but at least you have certainty to your situation without the hassle from creditors or interest being charged. And just think of all that spare money you will have at the end of the IVA!!!

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

[jampotfairy]

Does this mean that once I have paid the total owed plus the IP costs and statutory interest that I will finish paying early? Or that I have to pay as much as I can offer for the full sixty months I am signed up for even if this is more than I originally owed? Sorry, I'm really confused. I do want to pay back as much as I possibly can.

[Oliver]

No as soon as you have paid the entire debt, IP fees and possible stat interest you will have finished your IVA.

Best Regards
Oliver

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

[s.b]

Hi
I am in the same position and received a letter from my IP stating that my payments would mean that I would be paying back 100% including all the IP fees and that as soon as this was reached they would inform me and the IVA would be concluded early

[jampotfairy]

Ah I see!

Thank you very much for your help!

[:)]

[jampotfairy]

Does statutory interest differ from IVA to IVA or is there a way of working it out?

[ray_a]

Well

I know a lot about statutory interest!

Basically the calculation is based on when you enter the IVA to the date when you come out and is charged at 8% on the IVA agreed amount!

It can be a very high figure as I have discovered and I am trying to vary it with my creditors at the moment as in my case it was a very large amount.

This can be a real sting in the tail especially when my supervisor had not advised me initially when I was calculating the best way forward back in November.

Make sure you get the figure from your IP.

Good Luck

Ray

[jampotfairy]

Thanks for your help Ray.

[s.b]

Hi
I'm not sure but have a look through all your smallprint to see if it's mentioned. Also it depends on who your IVA company is but mine were trying to fob with off with incorrect information and when I went back and said it's not on any paperwork I signed they backed down. They said I needed to pay 60% of my bonus and I pointed out that my written agreement says 50% which they then agreed and also that it was in there that I needed to pay in ALL of my payrise which again I went through with a fine toothcomb and said that it didn't and they then agreed I would be able to keep part of this. Also I can't find any mention of statuory interest in my paperwork and there was no mention of it in my letter when it was confirmed that I would be paying everything back in full.
Is this standard across all IVA's to charge interest?

[MelanieGiles]

Statutory interest is generally only payable if there is a windfall which would allow your creditors to be paid in full.

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

[s.b]

Great, thanks Melanie

[iva.com]

Hi SB,

I'm sorry to hear that you have received bad information from your IVA firm (several times it seems).

Would you post a review of your experiences at IVA.com? This may help others considering an IVA to choose which firm to appoint.

Many thanks,

Terry Balfour,
IVA.com

IVA.com - Comparing IVA firms by using consumer feedback.

Please rate your IVA firm or Insolvency Practitioner by reviewing them here: http://www.iva.com/submit_iva_review.asp