I am in the final year of my IVA (started in Dec 2010 and have had 6 months added on over the course of the last 5 years) and recently become a limited company and am having some difficulties with affording payments for my IVA and also paying out all needed for the business and expenses.
I had a total amount of debt of 13500 and have now paid over 15000 (over 100% of the original debt)My IVA states I have to continue to pay off the outstanding interest and fees until the end of the arrangement however, is there any other way of ending this sooner? Can I not offer a final 'settlement' fee?
What would happen if I stopped my direct debits and refused to pay anymore? Would it make a difference in the long run? I am pretty sure they would apply for bankruptcy on the basis of interest and fees surely?
It would be a shame to let it fail now - suggest you speak to the IP company.
Is the debt the total amount owed to your creditors or just what was owed to the IVA?
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
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By my maths your IVA should have completed by now and I do not understand what you mean about having to pay outstanding interest and fees. IVAs have a finite time period and you pay what you can afford so if you have paid for over five and a half years your IVA should have finished. I am a bit confused so perhaps you could explain a little more.
I wonder if you have misunderstood the comment about paying interest and costs.
The IVA normally has a standard term of usually 5 years.
During this time you pay back what you can afford.
If you manage to pay off the total debt AND interest AND costs in full before the end of the term then your IVA would finish early.
If not you continue paying what you can afford until you get to the end of the term.
Having an IVA that states it has no end date but will finish once you have paid everything off in full, including interest and costs is extremely unusual.
I think the confusion has arisen here because Cee has questioned why the IVA did not stop when 100% of the original debt was reached. During an IVA you are always liable for the full debt, plus fees and possible statutory interest. An IVA will only end early ( other than by a full and final offer) when this sum is reached --- approximately £21,000.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Cee if you want to end early you would need to find a third party to git you a settlement offer near to the sum you would pay if your contributions continued in the normal way.
Terminating your IVA is not recommended. You will be back to square one again with the debts and at risk of recovery proceedings, to include Bankruptcy, which is presumably what you wanted to avoid in the first place.