I was under the assumption that you owe no more than the debt agreed at the Creditors meeting, plus the fee charged by the IP.
Is this correct?
If so, does the IVA run the full term, and then the overpaid monies returned, or can the IVA stop short of 60 months if the total is repaid (due to overtime/bonus payments, not through a F&F).
Also, if the full amount is repaid (as agreed at the creditors meeting), does this in any way get recorded/noted on a credit file?
Even though you have an agreed amount at the meeting, if you are able to pay more, then you are expected to. If you have a windfall for example.
It may well be that you are able to pay your creditors off in full (plus the fees and VAT). If this happens before the 5 years, then the IVA will complete.
Once completed, whether in full or the amount agreed, you will receive a Certificate of Completion. You send a copy of this to the credit reference agencies and they will amend your file.
Your credit will still be bad for 6 years, regardless of when it finishes.
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
My understanding is the full amount of debt + IP fees + statutory interest of around 8% that you would pay over the period of the IVA.
If you are able to do this within the five years then your IVA would be ended - otherwise it would run for the duration as agreed at the creditors meeting !
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
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
bad day kallis? I read your post several times and then realised hence my response ! Glad it is not VAT at 15% as we will be in this position probably !
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
Most IVA proposals presented these days have no provision for statutory interest, and if you do overpay - as does happen occasionally - the IP will refund the money to you directly once creditors and costs have been paid.
Hi
It is a common thought that once your IVA is agreed that you automatically owe the lower amount[agreed monthly payments x 60], however in reality you will still owe near enough the full amount, less dividends paid by your IP, up until the IVA is concluded. Only then is the balance of any unpaid debts written off.
Regards
Andy is right. The debt forgiveness comes once the IVA has been satisfactorily completed.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
