www.iva.co.uk

My IVA is due to end in Apr 2012, at the end of the agreement i have to attempt to remortgage my house and if successful pay additonal funds from the equity of my property to the fund. if i am unable to remortgage i have to pay a further 12 months of the original monthly figure. My question is, as the IVA has progressed my monthly payment has increased significantly (almost double). Would i still need to pay a further 12 months considering how much more i have paid over the originally agreed figure?

Hi and welcome.

You will always owe the full amount to your creditors until completion. Even if you pay over the agreed amount, unless you can pay 100p in the pound plus fees and possible statutory interest, you will have to carry on paying.

I just wanted to add my congratulations on doing so well over the past few years. Otherwise, I completely agree with Jan's assessment. Also, you will never repay more than 100p/£, fees and possibly interest.

Whilst in an IVA it is our responsibility to pay back as much as we can to our creditors over the term of the IVA. If this means that we are able to pay additional payments due to overtime and bonuses, this is great news for the creditors - it will all go towards paying back a higher percentage at the end of the day.

As others have said you will only ever pay back 100p in the pound, IP fees and possibly stat interest!

Congratulations on getting this far. Whether you need to pay the full extra 12 months will depend on whether during that time you can repay the full amount you originally owed plus IP fees and statutory interest.

Is there any equity at present in your property?

Hi Melanie,
I am not 100% sure based on current market conditions, I would suspect there is some equity but not a lot.

thanks to all for your responses so far.