When my IVA started in Dec 2014 it was based on debts of around £13.8k and for the first 12 months I paid £200 per month. I now earn more, and for the last 6 months have been paying £465 per month. Why would my settlement figure now be £14.5k if interest was frozen?
During the IVA you owe the full amount of the original debt, plus fees, plus statutory interest. As your disposable income increases so does your payment. Only at the end is anything unpaid written off.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
What I don't understand is how the IVA is recalculated when circumstances change. For example, if nothing changed I would have paid £200 for 5 years, totalling £12k, and the remainder would have been written off. I understand there are costs etc involved and I am certainly keener to clear all of the debt rather than just most of it, but now with repayments at £465 a month I'm being told that if my circumstances remain as they are it will run until the end of 2019 which seems odd to me. That would be £2400 in year 1 and £22,320 in years 2-5 now totalling £24,720 in repayments. The amount owed and costs etc are presumably determined at the outset so why would the total payment change so significantly throughout the process? Surely paying more than twice as much should simply halve the time it takes to clear the original debt?
The amount owed will always be the total debt plus the fees and interest.
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
Apologies, payments were originally set to be 21 months @ £200 followed by 39 months @ £315 totalling £16,485 which makes much more sense when looki g at totAl debt plus costs. I can't see anything in the paperwork relating to an equity release clause?
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
The equity clause won't apply to you at all. Your IVA should complete after five years
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
Thanks Foggy. I can't find anything about statutory interest in my paperwork. When I asked for a review in Jan this year when my new payment rates kicked in I had one person at the company tell me the IVA would be clear in August next year and another tell me my current payments wouldn't clear the debt at all, so they're hardly on my list of "reliable sources of information".
The statutory interest, I believe (it has been a while since I looked), is there by default in the protocol / terms and conditions which apply. It only usually gets a mention in the actual proposal or Chairman's Report if it has been specifically excluded.
From experiences shared on this forum the "handlers" who answer the phone have a variable range of expertise - unfortunately much of it at the lower end of the spectrum!
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
