Can you end up paying more than 100%

[mb2]

Just finished my first year and I am completing my review documentation. My arrangement is 89p in the £ which I am happy to pay. In the remaining 4 years (the first went so fast), if I earn bonuses which is likeley, I assume that I will need to contribute additional funds to my IVA. If this is 50% then an additional £14K in total would be avaiable over the term of the IVA. Basically if I contribute the £14K, this will push my IVA fund into credit. Can you pay more than 100%?

[Oliver]

The most you will ever have to pay in an IVA is 100% of your debt, plus your IP fees and possible statutory interest.


Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[iva experts]

Hi mb2,

I agree with Oliver.

Did you seek advice as to do a Debt Management Plan rather than entering an IVA? I ask because you are paying 89p/£.

Hope this information is of use

Regards. IVA Experts

[Oliver]

Experts makes an interesting point. Were you aware at the start of your IVA that you would likely be in a position whereby you could pay 100% of your debt within 60 months?

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[mb2]

Just finished my first year and I am completing my review documentation. My arrangement is 89p in the £ which I am happy to pay. In the remaining 4 years (the first went so fast), if I earn bonuses which is likeley, I assume that I will need to contribute additional funds to my IVA. If this is 50% then an additional £14K in total would be avaiable over the term of the IVA. Basically if I contribute the £14K, this will push my IVA fund into credit. Can you pay more than 100%?

I had considered a DMP but based on my wife's experience with CCCS I was relunctant. I wanted to be sure that I would have some protection afforded to me from creditors. I kept all of my creditors informed at all times and attempted to set up an informal arrangement but they wouldn't play ball. I don't have a problem with the dividend I am paying as I now do not have the worry of managing creditors, nor am I concerned that I might pay 100%. However if interest and charges are frozen as part of the IVA how can I now be charged statutory interest.

[Oliver]

Whether or not you are charged statutory interest is down to the terms and conditions of your IVA. The reason the clause is there is becasue it is only fair that if you can afford to pay 100% plus staturoty interest then you should do so. The amount of this interest is not determined by the creditors.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[mb2]

Whether or not you are charged statutory interest is down to the terms and conditions of your IVA. The reason the clause is there is becasue it is only fair that if you can afford to pay 100% plus staturoty interest then you should do so. The amount of this interest is not determined by the creditors.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

Thanks Oliver
If this clause isn't in place, can the IP add a variation to the agreement?

[Oliver]

As far as I am aware this clause can not be added post agreement.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[MelanieGiles]

No - the agreement stands and no interest can be charged. Statutory interest provisions were introduced to bring IVA's in line with bankruptcy legislation, but are only usually incorporated into IVA's at the express instigation of creditors.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk