www.iva.co.uk

HiI entered in to an IVA in 2006 amd am about to complete my second year. I took on the IVA as I it was my own fault that I got in to debt and I wanted to be able to pay back as much as possible to my creditors.I find myself now in an unusual position.

Shortly after entering in to the IVA I received a promotion and a pay rise which I was not expecting and happily in these two years my salary has been increased by £13,000.00. I find that I am now in the position where I could be paying back the original debt easily without having ruined my credit rating and my payments would have decreased over the next few years as at least 2 of the loans only had a couple of years left to run.However, it seems that my payments on my IVA will increase exponentially with every pay rise I receive and I will end up paying more each month than I did when I was in debt and I have a ruined credit history as well.I have spoken to the person who did my first year review from my IP company but they were unhelpful and did not really give me any answers. I also received a letter from the IVA Council this week and have been very interested to read the posts on your blog.

Hi lisa and welcome

The most you will ever pay back is the original debt plus IP fees plus statuatory interest.
If this is all paid early then your IVA will conclude and you may even save on some of the fees.

Hey Lisa, welcome to the forum. Yes, the IVA Council definately makes an interesting read. I can't advise you but I'm sure an expert will be along shortly. It's a very unusual situation as you say, I'll be interested to see what advice you receive. Viki X

Hindsight is a great thing - and I assume that the IVA was the right way forward for you at the time you agreed to enter into the contract with your creditors.

It may be galling to now think that the IVA was inappropriate, given the IP's costs and the fact that you can pay creditors back in full, however you have to counter this against the ongoing interest you would have paid had you not been subject to formal proceedings. You were in debt when you entered into your IVA and that is enough to ruin a credit rating - you don't need to necessarily have the procedure to create one.

I suggest that you try and get the debts paid off as soon as you can, to avoid unecessary future cost.

Hi
You are in a great position
You can repay your creditors 100p in the £ and possibly finish your IVA early.As others have said your IP fees will be no more than the interest that you would have paid over the five years.
Regards

Wow - fantastic news.

As Mel says, hindisight is a wonderful thing and just think of the stress free time you've had as well. You could have ended up with depression or worse if you had struggled in those times. Be happy you can pay it off in full AND early too !