Hi. I entered an IVA owing £13k. I am just about to start my 3rd year and I have asked for a final figure. I have been advised be the IVA company to pay off the IVA in full, is £23k in total! ...I can't believe it. How am I paying back £23k when I only owed £13k from the start? I know there is interest and fees but this is horrific! Can anyone advise if this is normal? I'm working so hard to pay everything back but now I just feel like quitting work
You asked the wrong thing - a full and final is basically an offer to try and get yourself out of the IVA e.g. if in third year 24 months x £100 (or whatever your payment is).
The final figure you have been given would probably include fees, statutory interest etc.
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.
To pay off everything in full you need to pay the full original debt, plus fees and possible statutory interest at 8% p.a
If you wish to end the IVA early with a settlement you need to offer the number of payments you have left multiplied by your monthly payment. If you own your home you might need to add an extra 12 payments in lieu of equity.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
