www.iva.co.uk

Hi, I am currently looking at a few different options to sorting my debt out. I owe £42000 to four different creditors. This amount has stayed around the same for the last couple of years as the interest keeps going up and most of my payments go to paying the interest. I got caught up in the interest free credit card offers of 12 months free interest ( now robbing Peter to pay Paul). Anyway!


If I was to enter into an IVA with the creditors and pay 100% back in every pound plus IP fees. Would they still demand the statutory interest back at the end of the five years as I would have equity on my capital Mortgage?. or would all my debts be finished?

Also If i was paying 100% back in every pound would they still be able to demand any overtime that came in on my wages at the end of the month?

I appreciate any help
Thanks John

Hi and welcome to the forum.

In an IVA you will never pay back more than you actually owe. If you were in a position to pay back 100% then you would probably also pay the interest.

Take a look at www.iva.com where you will find a list of IVA providers and reviews on each.
Give 2 or 3 a call for some free case specific advice. They will help you to make a more informed decision about what to do next.

If you entered an IVA it is unlikely that you would be expected to pay statutory interest from normal contributions, overtime or equity. You would still have to pay your share of the overtime but this would shorten the term of the IVA.

As Lisa says, take some advice and get all your questions answered.

If the company you chose to represent you uses the IVA protocol, this does not provide for statutory interest to be payable in the event of a full repayment to creditors, and this would only be necessary at the express stuipulation of creditors which is unlikely.