Hello and Good Morning. Does any money paid in come off the balance ?

[john c]

Hello and Good Morning.

Does any money paid into an IVA other than the agreed monthly amount come off the balance ? overtime/bonus/windfall etc.

[kallis3]

Hi,

Anything extra paid in goes towards your IVA but won't come off the balance. It means that your creditors will get more.

You will always owe the full amount borrowed to your creditors until IVA completion.

[taliesin]

Hia John C,

To the best of my knowledge, all IVA's stipulate that any Overtime/Windfalls/Bonus monies received shall be counted as an extra payback to your creditors. You still owe all of what you orignally owed pre iva until the completion until completion date. So if you were paying back say 40p in the £ of a £20000 debt, you'd be paying £8000 over 5 years through monthly contributions. Overtime etc would go towards that original £20000, but not towards that £8000 figure. Hope that makes sense....

[kallis3]

Of course if any windfalls etc meant that you could pay back 100p in the pound plus fees then your IVA may finish sooner.

[taliesin]

Ah,

kallis3, are you dreaming of Euromillions too.

[kallis3]

The normal lottery would do for me!!

I'd give anything for a tenner win at the moment!!

[taliesin]

Tell me about it. I've just come off a 70 hour working week because the gas and electric bills arrived through my door last week.

[kallis3]

That's not good at all! Thankfully mine aren't due until November and I hope I've paid enough across via the DD to be able to cover them.