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If you have a pay rise, then lets say you pay 600£ per month as oppose to lets say the original £300, does this shorten your time terms or would it increse from lets say £18000 to pay off in total(i,e. £300 per month for 60 months = £18000) and if it does increase this amount, whom does that go to if the creditors have agreed to £18000, lets say, in court at the start of the IVA, or as said, does it simply reduce the time you pay off the total figure, I am a bit confused as to how ultimately these, additional incomes affect the total arrangement??
Many thanks!!

Hi there and welcome to the forum

Your increased payments will only shorten the IVA duration if you are able to pay your creditor and the costs in full. Creditors don't necessarily agree to £18,000 in your example, but they will agree to you paying as much as you can afford to over a five year period.

Im glad i dont do overtime

You and me both!

Hi Melanie thanks for the response, much appreciated. So in my case then, I actually owe £43,000, this is made up of approx £36,000original debt the rest in additional costs and fee`s for the none payments over the last twelve months. My surplus income had been deemed to be approx £300 per month at present (Informal enquiry, website based). However, if the market place picks up, potentially I could gain a pay increase of £500 per month net as of next April 2010, would this mean, that (In theory depending on IP etc.) I could end up paying £800 per month for the best part of five years, i.e. ( £800 x 60 months = £48,000 )especially if the IP`s costs are taken on top of the original debt. Worse still my property is at present worth about £5k less than I owe on it, but if this went up in value lets say by £15000, would this mean there could also be an additional £10,000 there that could be incorporated into the IVA at the correct point. If I choose the wrong comapny and IP, is it true that thier percentage could be at least that amount alone, meaning if all of this scenario stacked up in this way i could "potentially" if badly advised, be liable for aprrox £58,000 at the end of five years based on an original debt of primarily £36,00ish. i understand that this is a long question and if mainly correct, you could just answer yes/no, I understand your time is very valuable and I thank you very much for it. Many, many thanks.

You will not be badly advised if you decide to go into an IVA now - as based upon your current figures you cannot meet contractual repayments as they fall due. If your circumstances change, then your creditors will expect to be repaid as much as you can afford, which was obviously the intention when you applied to borrow the money in the first place.

Don't forget that as you are paying IP fees throughout the IVA, you will not be paying any interest.

Don't worry about spending my time - I have plenty to offer, and the test match has finished now, so I am at a loose end!!!

Mel![:D][:D]

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