I just want some advice. I am in year 3 of a 5 year IVA but feel I could now continue to manage the debt with the creditors myself. is this advisable? I understand I won't be protected by the IVA regarding interest.
Due to increased salary I would be able to contact the creditors and agree larger payments then they are currently getting to get the debt paid back quicker.
Reasons for this. 1.Quicker pay back of outstanding debt. 2. start to repair my credit rating quicker. 3. Continuing frustrations with amount of money going to IVA "fees" rather than paying back debt. 4. Future increase of income would rather go to actually paying back the creditors rather than more "fees".
If you can give any advice I would be very grateful. I also feel like the IVA wasn't the correct method at the start now. I was young and the amount of debt was relatively low(£14,000).
Also would an IVA failing still come off somebodies credit record eventually just as it would normally?
With less than 2 years left you would effectively be starting again.
I am not sure that there are any benefits.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
Your IVA will remain on your credit record for six years regardless of whether you finish or not.
If you have an increase in pay then your IVA payments should be more and it may be that you are able to repay your debt in full.
As regards the interest, the creditors could put on all of the interest that has so far been waived so your debt could be greater.
You've completed more than half of the term so I'd be inclined to let it run its course.
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
Personally, I would continue with the IVA as it's managed and you're protected.
I also feel your credit rating will repair itself in due course post IVA.
With an income increase, read your proposal as it may be that the terms and conditions of this may deal with this in your favour too. All proposals are individual too so best to check how your company would deal with the increase.
Whatever you decide I wish you all the best.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
As said above this action will do nothing to repair your credit rating.
Regarding the fees charged -- the largest part of fees has already been taken by the IP and the ongoing percentage has been agreed by the creditors. Stopping the IVA now will have little impact there.
The creditors will add back the lost interest and possible late payment charges and that original debt of £14k will have increased substantially.
If you wish to simply get the monkey off your back, save your share on overtime and extra pay until you have a reasonable amount to make a full and final offer with.
Finally, looking at this from a creditors perspective: Currently you are contractually bound to make your agreed repayments. You can come out of the IVA, by allowing it to fail, and promise to make increased payments to the creditors, but they have no reason to believe that you would actually make those payments and would then be able to pursue collection by other means, should they so wish.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
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
I agree with the others - continue your IVA. The amount of dividend that creditors get paid will be final. If you breach/fail your IVA you are at risk of Bankruptcy and any 'deal' you make with creditors will not be legally binding like it is in the IVA. Also add to that your increase in income means you have to pay more back via the IVA now anyway and the credit rating won't matter as it goes from your state date. Have you considered getting a friend or family member to help you with a lump sum instead to reach a F&F? This way you can swap your IVA creditors for one friendly creditor behind the scenes (although it will need to be treated as a gift)
Was your IVA on the basis that your creditors would receive 100p/£? (Unusual) If not then I am not sure why you are trying so hard to earn more money to pay more to your creditors! Although it is commendable. (I also appreciate that you are also probably entitled to keep a % of your overtime depending on the terms of your proposals)
Lisa. Its not 100p, well it wasn't. But i have had 2 pay increasement since I entered the IVA and paid my car off. So my payments have gone from £191 a month at the start to now being £419 a month.
I also get to keep 50% of any extra earnings. But i was thinking if ontop of my potential bonus I could add few thousand from overtime and maybe offer the f&f option in say 10 months time.
One question I do have. Am i right in thinking that there is a maximum monthly payment that Is in place to ensure I don't over pay back more then the original debt + fees?
You will always be liable for the debt, plus statutory interest plus Fees, depending on the terms of your IVA. Therefore you can never/would never need to pay more than that figure. Look at your original proposal pack - it would have included a Comparison Statement and show how much the total debt and costs were in your IVA. By my (very rough) calculations in your case it would be c£23k.
There is no maximum monthly payment, other than your agreed disposable income. What would happen, if you hit 100% original debt plus fees and statutory interest, is that the payments would cease at that point.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Lisa Thomas
You will always be liable for the debt, plus statutory interest plus Fees, depending on the terms of your IVA. Therefore you can never/would never need to pay more than that figure. Look at your original proposal pack - it would have included a Comparison Statement and show how much the total debt and costs were in your IVA. By my (very rough) calculations in your case it would be c£23k.
Ahh right I see. So I need to stop looking for "ways out" and just keep my head down and make the payments really.
