www.iva.co.uk

Hi

I am 9 months into my IVA. My original debt is £16500 but the IP has calculated it to be £17525. I pay £292 a month which is £1 for £1 of that total. I have recently inherited and will be paying around £12500 into the IVA. My question is does come off the total balance? Surely I don’t keep paying £292 or more for 5 years as this would be nearly double my original debt? Can I request a statement of account to see where the payment goes? I don’t think it is enough for a settlement but would I be better failing the IVA if there is only £5K to £7K left on the debt? I didn’t sign up to get a write off but rather to make sure I could manage the payment. I am also due a pay rise of approx £200 per month so will be paying over the odds when my monthly payment is increased Any advice appreciated (I will be contacting my IP after the weekend but just want some advice on how to proceed when inheritance and pay rise is declared)

During the IVA you will always owe the balance of full original debt, plus fees and possible statutory interest. If, because of extra payments into the IVA, you hit that figure before the agreed term is up you will exit the IVA early.
On a debt of around £17k, this figure would be in the ball park of £23k plus around £1.3 k interest each year (reducing as the balance decreases). So, around a year in you would be looking at £24.5k. You would have paid in around £3.5k plus £12.5 k inheritance, so £16k in total.

Hi Foggy

Thank you so much for the explanation. I’m not great with figures (probably how I got into this mess in the first place) but this has given me huge peace of mind. I’ve emailed everything over to my IP now that I understand the process. I’m incredibly fortunate to have received this inheritance and all things going well an early exit on the IVA. Thanks again

If your iva ends early based on your payments to date and inheritance, please do remember that your credit record will remain impacted for the balance of six years from the start of your iva.

I know exactly how you feel with regards receiving inheritance during your iva term ..its a huge relief and pressure lifted in very difficult and sad times.

Hi Luluj

Yes thank you-easy to forget it will still impact credit score but it’s a small price for me to pay considering. You hit the nail on the head about the inheritance- my lovely Uncle always looking out for me even when he’s not here.