Hi I'm in an IVA & have been for 2 years. My original debts were over £40000 creditors agreed to write off half of this plus IP fees. I pay £346 per month & I have 3 years to go on paying. Two things have occurred 1 I was in a road traffic accident in 2010 & last year I received almost £10000 in compensation, this was for pain & suffering. I informed the debt agency by telephone & I was advised that I could keep my compensation. I asked them to put this in writing but they didnt, so I am now worried about this. I used a lot of this money to get divorced. I am about to get a divorce settlement of £45000, can I now pay off what remains of my IVA about £8000 + IP fees or will they make me pay it all to clear the original debt. I am terrified of speaking to my IP about this so any advice would be very helpful.
Your original debt of 40000 plus IP fees and possible statutory interest remain at all time during your IVA until the end. Not sure how divorce settlements are dealt with.
However, I do know the original debt remains at present - hang in there a knowledgeable poster will I'm sure be along to offer some advice.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
I would imagine that they will require you to pay the settlement over to your creditors up to the limit of original £40k debt, plus fees and possible statutory interest. It is worth asking your IP to request that any obligation to statutory interest be removed ( it might already be excluded ). This will save a few quid!
At least you will be able to go forward debt free and, although without the lump sum, £346 per month better off.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
