I am 2 years into a joint IVA starting with £36k debt. Last year revised IVA reduced payment from £478 to £302 per month. I now have new contract paying me £250 gross per day therefore potential of £65,000 gross up to £80,000 with overtime on a contract set for 12 months. I am wondering whether I would be able to discuss with my IP the option of amending my IVA to tie in with my contract so that with increased monthly payment I could complete the IVA by end December 2012 as I dont know if contract will be extended next year. For example if I remain on £302 a month I would pay about £15000 over remaining term could I offer to pay £15,000 this year and cease IVA in December?
You will need to speak to your IP anyway to inform them of the change in circumstances. If you can pay back your creditors in full plus fees then your IVA will conclude earlier.
You will always owe the full amount to your creditors until the IVA concludes.
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.
Bob Marley. http://kallis3.blogs.iva.co.uk
the full amount to be repaid to end your IVA early needs to be the amount of the original debt owed, not what was agreed at the start of your IVA as the minimum dividend.
You always have the option of a full and final, however, as your circumstances have changed for the better, it is doubtful it would be accepted as the creditors will now gain a much better return, for the next 12 months at least
Of course they would get a better return the next 12 months but if I will out of a job come next January could i put this to the IP to discuss bringing to an end?
If you lose your job next year then you could discuss making an offer of the payments to date to conclude your IVA.
Best left until closer to the time though.
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.
Bob Marley. http://kallis3.blogs.iva.co.uk
Yes of course you can Peter, but it's all ifs and buts, the creditors will want to 'make hay while the sun shines' so to speak, so they and your IP won't be prepared to deal with it unless it happens, in the meantime they will just expect higher payments from you and to revisit it, if and when the time comes that your circumstances change again.
Thanks. In relation to the additional income. What would the IP/Creditors be expecting in terms of increase in the monthly payment? Also as I am now being paid as a limited company how does that work in terms of income level as my accountant will be calculating basic income with a dividend for tax benefits? Will my income be solely based on income and dividend? What happens to any funds left in the business to help develop for potential future contracts and expansions? Also would I be able to lease a car now that I have extra income as my role has a different working shift to my wife and therefore we now need 2 cars
You would have to run the car lease proposition past your IP - there are only a couple of companies that are good with those us in an IVA but they need a decent deposit and the APR is high.
As to the rest, you need to get case specific advice from your IP.
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.
Bob Marley. http://kallis3.blogs.iva.co.uk
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.
Bob Marley. http://kallis3.blogs.iva.co.uk
