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Posted: Tue Aug 16, 2016 1:54 pm
by Maz.40
my IVA will reach 5 years in Oct this year, i have never missed a payment and have also paid a £12,000 lump sum when i sold my house 2 years ago. after paying this i was asked if i agreed to pay 2 further years i agreed as it would leave me with a 0 balance. i have since been infomed that what i have agreed to is 2 years after the 5 years to pay the interest, is the correct?
Posted: Tue Aug 16, 2016 1:57 pm
by kallis3
Hi and welcome,
What interest is it? Is it statutory interest? I wouldn't have thought it would take two years to pay off, plus you have no equity now as you have sold the house so as far as I am concerned you should finish after five years.
Which company are you with?
Posted: Tue Aug 16, 2016 2:06 pm
by Lisa Thomas
Hi are you definitely in an IVA?
Are you sure you're not in a DMP?
Interest is usually frozen in an IVA unless and until you can afford to pay back the debt in full plus interest plus costs before the end of the duration.
If not your IVA ends on its original end date.
I'd be very surprised to hear that your IVA was extended for 2 years after you've not only done 5 years but also voluntarily sold your property and paid the equity in - usually the point of the IVA is to save you from having to do this.
It sounds to me like you are in a Debt Management Plan.