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Posted: Tue Dec 31, 2013 7:26 am
by tarasue
I have had a decent pay rise and know at my annual review that my payments will increase, does that mean that I hit my target earlier or does my target increase? I am currently paying 49p in the £ and am 3 years into my IVA.
Posted: Tue Dec 31, 2013 7:30 am
by luluj
It will be used to increase your return to creditors.
Posted: Tue Dec 31, 2013 8:02 am
by Shining
Your payment will increase as you say and the return to creditors will increase the IVA will only finish early if you are able to pay your creditors back 100% plus any fees due to IP etc. ,
Have you informed your IP about the payrise? Or it may be that you know it's only dealt with at review times, only asking as I don't want you to get any surprises at review time
Posted: Tue Dec 31, 2013 8:32 am
by Foggy
Although you have a "target" in estimated (or defined) return over the life of the IVA, you will always owe the whole of the original debt plus fees and possible statutory interest during the life of the IVA. It is only at the end that anything unpaid is written off.
Congratulations on the rise -- at least you will benefit from 50% which should make things a little easier.
Posted: Tue Dec 31, 2013 9:31 am
by welshwiz
We also have considerable change in income due to hubbies New job, we paid half of everything over 10% until review which then paid half of total increase which is only fair we are still better off, creditors have a right to expect as much paid back, what you have to remember is you are not paying any interest. Enjoy a few treats with increase we decided to save half of ours but still have a night out every month.