Paying more than originally agreed

[JJSIDE]

Another question about how IVA's work.

My IVA proposal states I will pay back 42,000 over 5 years, which works out at £700 a month over 5 years. This ws agreed at the time as a reasonable repayment based on an estimated future income ( as I was sick and out of work at the time the IVA was agreed ). As it has panned out, I am actually earning more than that now and paid back £700 a month in Year 1, in years 2 and 3 I have been paying £1200 a month.

Does this mean that I will finish paying into the IVA earlier than the 5 years, i.e. at the point I have paid in £42,000 + any fees charged? Or will I continue to pay for 5 years, therefore paying back considerably more than was originally agreed in the proposal? Can someboby please tell me how it works.

[tracy.h]

Hi
As far as i am aware if you are in a posistion to pay back more of your origanal debt then you will do as you have to pay back as much as you can afford,and your iva will not end early.
The extra will go to your creditors as it will still probably not be a 100% of your origanal debt,im sure one of the experts will explain it in more techncal terms.

Tracy

[Adam Davies]

Hi
Tracey is correct.
You will continue paying all your disposible income until the five years are up or you have repaid your full original debt and IP fees.You also may have to pay statutory interest.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[63k]

So I am thinking, If we were to get yearly bonuses, we would be no better off paying them into the IVA as it wont really settle anything any earlier. I was told we would not pay any more than we actually owe. Im confused as also have been told the first 2 monthly fees are all we pay for the IVA

[tracy.h]

Hi
It will depend what your insovencey firm state in your proposal.All insolvencey firms have different criterias relating to bonus's and overtime,but i do know from reading posts on here some people have to pay 100% of bonus,as you have to pay creditors back as much as you can afford.Others pay 50% as with the same with overtime.
Don't understand what you are saying about the two payments being all you will pay for your iva?

[63k]

Two payments, My company ask for two payments per the first 2 months to cover the admin fee etc, I was then told there would be no more payments.

[Adam Davies]

Hi63K
In all probability 50% of your overtime will have to be paid into your IVA.
At the end of the day you will be better off because your creditors will be writing off a large chunk of your debt at the end of the IVA and you have had all interest and legal action stopped,including phone calls.
Clearly your IVA was not explained very well to you.
regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[63k]

Thanks, I think I was explained to but I am just at the courier has been to collect relevent paperwork from me stage! So am flapping about actually getting the IVA before all my creditors start flapping at me for money I havent paid them for the first time ever!