I have just received a payment from an IVA which is now completed. The original debt to me was in excess £25k. I was paid circa £18k by the redundancy service and the balance some 19 months later. The agreement in the IVA was the debtor was to sell one of his houses and clear all debts within 18 months, with no interim payments into his IVA during this period. My question is regard to interest. Under the agreement interest was to be paid (anticipated at 8p in the £). No interest payment was included in the cheque I received. (1)Am I entitled to interest. (2) If so is it for the total amount originally owed or just on the balance. (3) The redundancy service made two separate payments a few weeks apart. If I am entitled to interest how should it be calculated
If the agreement mentions interest is payable, then it should be paid. Statutory interest is calculated at 8% per annum simple, on the reducing balance.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
