Hi my husband and I have had an iva each for 6 months now our debts were 12,500 we pay 150 a month as my husband is not working we will have paid 9000 when we finish my husband is going for a job and if he gets it we will have a surplus of 1,000 per month will we have to pay all this to the the iva or can we change to a DMP
Hi and welcome. If your husband is successful in getting the job (good luck from me) you will complete a revised income and expenditure and be expected to pay more in the IVA yes but will still be left with your allowances to live. You will never pay more than the original amount of debt so therefore, if you manage to pay off the debt, plus IP fees and possible statutory interest then the IVA would stop at that point.
To change to a DMP, removes your protection from the creditors, they will be free to contact you (hassle) and add charges and interest again. To return to a DMP you would have to let your IVA fail first.
Be worth looking at the figures as if you can conclude your IVA in full, you're protected along the way and you may finish before the 60 month term or monthly term as per your proposal.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
You should be around 50% better off as the IVA payment will increase by half of your net gain. Don't forget to offset any extra expense for working ( travel, lunches etc).
Apart from what Lesley has mentioned a DMP can go on for many years, whereas the IVA has a definite end point.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thankyou for your replies so am I right they may take once my expenses have been changed half of what is left plus the 150 we already pay so it may be paid of in 2 years instead of the 5 years
Yes, the payment will increase, but it won't finish until you have paid in the total original debt, plus fees and possible statutory interest (or it comes to the contractual end).
Check your paperwork as on some arrangements statutory interest is excluded.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Personally I would stick the the IVA as it is legally binding (unlike a DMP) and has a definitive end date as the others suggest.
Also as Foggy points out you will keep paying what you can afford throughout the term - you could only finish early once 100% of the debt plus interest and costs have been paid in full.
If you decide to go for a DMP they will possibly insist on full payment, which might be longer than the remaining term of your IVA and you will also be at risk of being made BKPT.
Last edited by Lisa Thomas on Fri Apr 29, 2016 10:06 am, edited 1 time in total.
