total to pay in the IVA

[Mikem]

I have a joint IVA with my wife, we had total debt of 58k and the IVA was set at 28k, however, I've now had a very good change of job which leaves a large amount of disposable income. we are just doing our I+E to start our third year of the IVA so have already paid two years worth of money.

my question is that what might be considered a reasonable amount for the IP to agree to take additionally? we pay £579 a month and we would like to offer another £400 to make the payment £979. this stills leaves quite an amount of surplus income though. also, given the amount we owe on the IVA paying almost £1000 a month i've worked out that we will have paid back the remaining money in approx 20 months which is more than a year before the end of the five years. are we still expected to continue paying beyond the 28k and would they look to recover closer to the orginal debt before I entered the IVA?

Any advice would be greatly appreciated.

[MelanieGiles]

Hi Mikem

That will now be based upon the terms of your specific IVA, but you should be prepared to pay over at least 50% of your additional earnings to the supervisor. What you need to bear in mind is that you still owe 58k and not 28k - so your additonal payments will only see you paid up in fall if you pay the full £58k and not the £28k originally estimated.

[Mikem]

Many thanks for the quick response on a Sunday.

here a bit more of a question. we have paid for two years - average 550 per month (£13,200) not sure what's been eaten in fees on that though. however, even if we've only paid 8k off so far that leaves 50K to pay in total - i've worked out that it would be £1400 per month for the next three years to pay that fully - I'm assuming that they wouldn't take more than this, would they?

[Adam Davies]

Hi
The maximum that you will pay will be the original debt plus IP fees and possibly statutory interest at 8% per year.
So 58k plus approx 7k in fees is 65k,so approx three more years if interested is not added
Regards

[MelanieGiles]

They will take as much as you can afford to pay in line with the terms of the arrangement Mike.