www.iva.co.uk

Hello,

currently have an IVA with a well known company and am currently in my final year, but in the last year i have done very well at my job and earning alot more.

I understand their are fees to pay if you are able to pay all the debt back whilst na IVA but i feel like im having to pay more than i should but thats why im here asking for advice

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Original Debt owed £12435.30
Paid to Date: £7627.79
Additional to pay: £3845.85
Total £ 11473.64
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Now as i have my own flat(rented) now my bills have gone up and as im now also earning more too they have offered me the following revised figures

Either
12 x 264.39 and if earn more than £1700 per month pay 50% back into iva
Total £3172.68 plus 50% over income
or
12 x 414.90 and if earn more than £2000 per month pay 50% back into iva
Total £4978.80 plus 50% over income

With either of them i have done the figures below
£11473.64 £11473.64
£3172.68 £4978.88
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£14646.32 £16452.52

Now if this is correct i have no problem in paying it all back as its my fault for getting into this mess, but i do feel like im paying too much in fees etc

if someone could advise i would be very grateful and if im honest the £414.90 is a tad too much and would put me right on the edge

Your IVA payments are based on your disposable income. If your income goes up then a full review is conducted alongside any additional expenditure that you may have incurred - often a new job increase expenditure etc with increased mileage etc etc. Ensure your I&E is fully reviewed using accurate figures and work with your IP to agree a affordable figure taking into account the rules for additional earnings through overtime etc where appropriate to do so.

this has all been done and this is what they have come back to me with!

Basically i will be paying at least £4k more plus 50% each month

just done some figures and if i was to earn the same commission over the next year as i have done this year i will end up paying over £20k on an original debt of £12435.30

Hi. To cover the whole original debt plus fees, assuming no liability to statutory interest, you would be paying back something around £16200. If you hit this figure during whichever extension you chose your IVA should close early.

£16k on a debt of £12k is probably better than you would have paid out with interest added to the debt outside the IVA to repay as normal.

thats fine just wanted to make sure i wasnt paying more than i should i understand its my problem etc

oh just noticed on the email they say i also have to pay 8% statutory interest?

What is this?

In many agreements, if you manage to pay back 100% of the original debt then they also ask for 8% statutory interest. A lot of IP's get this excluded at the outset and some will seek a variation ( if asked) to get this clause removed. After all it is punishing those who have actually paid more of their debt off, in effect.