www.iva.co.uk

hi i completed my iva early - completed after three years instead of 5 - i have just had my certificate of completion and am very happy. What do I do now? I know that IVAs stay on credit file for 6 years but can i at least get my completion date posted on my file to show that i settled early? will this help speed up my credit reference? i dont want to get into more debt but will be looking to move into a bigger house when we start a family over next year and i know that the interest rates will be a lt higher if i have a bad credit history. I know of equifax and experian - do i need to forward this certificate to them to close on my file? sorry for all the questions but i'm really confused on what to do next, and dont want to sit back and do nothing if there is a chance that this may help me repair... thanks jane

Hi and well done on completing your Iva.

I'm at the other end to you but I'm sure someone will be along to help you on that one soon xxx

Send a copy of your complation certificate to Experian, Equifax and Callcredit and ask them to update.
Any defaults that have been registered after the date of the IVA acceptance can be removed by sending copies to the creditors also and asking them to remove them.

Hi JC,
Iam only just begining my IVA, first payment due next week. I was just wondering, how do you manage to complete your IVA early? It sounds fantastic, and well done to you, but how do you do it? Is the figure that is set at the beginning binding, so that any overtime payments, windfalls, etc, brings the balance down? If that is the case, I will be putting as much overtime in as possible to get this repaid quicker!
Thanks for your time,
Bob

Welcome Roberto,
The monthly repayment figure agreed at the start of an IVA is reviewed every 12 months and can go up (or down) depending on your changing circumstances and available disosable income. Any extra income earned which is paid into the IVA means a greater return to your creditors. Your IVA will only conclude earlier than the 5 year mark if you are in a position to pay your debts in full plus IP charges and any statutory interest - remember that, irrespective of the dividend agredd at the beginning, you owe your creditors the whole balance of your debt throughout the life of an IVA. It is only when the IVA reaches conclusion that any remaining debt is written off.

Your IVA can be completerd early as well by offering a full and final amount.

If you lose your job for instance, and someone offers you the money to make an offer and the creditors can see that the rest of the paymewnts can't be completed, then they are likely to accept this and the IVA will conclude.

I don't believe statutory interest applies anymore, but I could be wrong.

Thanks for that COYS, I am getting the picture now! So hypathetically, if I won on the lottery, say 100,000, and my total debt to creditors was 50,000, I could pay the 50,000 plus any fee owed to the IP, and the rest would be mine?
Also, would it be to my benefit to work all hours possible, to pay back as much as I can ?
Sorry for what may seem to you as stupid questions, I just need to have a clear understanding of how this works.
P.S. my first payment is next week, and I`m rather strangely, and optimistically, looking forward to it.

Kallis, thank you for that.
Am I slightly mad?, I really am getting excited about this!

They're not stupid questions Roberto.

You are correct with the lottery win scenario. Any large sum of money such as that is classed as a windfall and would need to be paid across. If you were able to pay off in full then anything left would be yours. If not, then you would continue to pay across to the IVA as well and it may well be that it continues for the whole five years, but at least you will have paid back a lot more to your creditors.

Roberto,
Your lottery win hypothesis is correct. Once an IVA is agreed the monies owed at that time cannot be increased, even if you did "win big", so the money left over from a lucky win after you pay back all of yours debts plus fees would be yours.

Any additional income, from overtime/bonus etc, would benefit both yourself and your creditors. What provision was in your proposal? We can keep up to 10% of our regular monthly income before we pay 50% of any extra into the IVA. So, for example, if my net monthly earnings are £1,750 I can earn an extra £175 (net) each month and keep it... if I were to earn an extra £275 one month I would keep the first £175 then split the extra £100 - meaning that I pay £50 more into the iva that month. Others have a straight 50% split..... it's all down the individual agreement.

Yeah COYS,
thats the same agreement as I have, and I think that`s very fair all round. Now hears another one, if I decided to also pay in to the IVA, extra monies, such as the 10% of overtime that I am allowed to keep, would I benefit from this in the long run?

Well, there's a question i've not seen before on the forum!

Obviously, that would increase the return to your creditors so they would benefit. Most of us find that so much of our cash gets eaten up across the month by unexpected expense that realistically you will need to save any surplus for these times rather than hand any more over. Budgets are often tight, especially in the first year of an IVA, so don't feel guilty about keeping your fair share of overtime etc. If you do find yourself with a little spare cash at the end of the month, give yourself a small treat and/or put a little aside for the next time the car goes wrong or a boiler needs fixing.

That said, if you think that you will be in a position to repay your debts in full before the 5 years are up by doing this then you will close the IVA early and that would be a huge benefit. It really depends on how much extra you could realistically be able to put into the pot. Allowances should be set fairly to allow enough to live on, without excessive spending, and most of us find that it really is a lottery win or a full and final offer from third party funding (a gift/borrowing from friends or family) that is the only realistic way of finishing an iva early.

Good luck and best wishes.

If you paid it all across, then it would increase the dividend to your creditors, but would not necessarily decrease the term. That would only happen if you pay 100p in the pound.

I would keep the overtime amount you are allowed to keep - this can be used to fund birthdays and Christmas and even a holiday.

You don't want to be struggling.

Kallis and COYS,
thank you very much for your guidance and advice. Much appreciated,
Here`s to the next five years!
[:)]

Good luck Roberto.

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