Is this an excessive amount of fees and interest to have to pay in order to complete early ?

[Louise.80]

Hi I am nearly in the last year of my IVA and due to a job change a couple of years ago I have now managed to pay back my initial debt of £20,000. Upon asking my IP about checking if I can complete early, they have told me in order to pay 100% back I need to pay another £13000 which I assume is interest and the IP fees, to me this sounds excessive. Can I ask what your view on this would be?

[Shining]

Hi and welcome. Was the 20,000 you have paid back your original total debt?

I'm not too sure about fees all this should be in your proposal will be worth checking what the fees for managing the IVA was.

[Louise.80]

Hi Lesley, yes the IP has confirmed that the original total debt amount has been paid back.

[Louise.80]

I am not sure about the fees as I recall the creditors had an issue with what was being charged but I have checked and the fees documented total £3822.59 but supervisors fees are 15% and I am guessing that as my payments trebled due to the job change their fees now mount up.

[Foggy]

Yes, with the Nominees fee, then 15% of payments for Supervisors fees, they certainly do mount up. Add to this the possibility that, because you have paid 100% of the debt, you could also be liable to pay statutory interest the sums get larger.

However, completing early is not the same as paying all monies due. To end the IVA early you should only have to pay your current monthly payment x the number of payments left.