www.iva.co.uk

Sorry if I appear to be a bit thick here. We owe 73k to our creditors. Our IVA was approved in Sept 2007 at a monthly figure of £1270, plus we had to pay £3500 for the sale of my vehicle. Based over 60 months the monthly payments equate to £76200, added to the £3500 and the other additional payments likely to be made over the years for my annual performance bonus (already paid £699 last month) this will probably total £82k.
Our IVA states we must return a dividend of 81p minimum - quite happy to return more but my questions is when we reach the point of having paid back the original debt of 73k plus the IP fees, will the IVA at that point end?
Also I have an elderly grandmother,who will not unfortunately see my IVA out therefore my inheritance from her will also form part of my IVA payments - therefore this is likely to reach sooner rather than later I would have thought as this likely to be approx £30k.
Any advice on when the IVA will end?

Lulu

Hi Lulu
Someone will correct me if wrong, but I think it would be the total original debt ,plus Ip fees, plus interest at about 8%. You would pay no more than that.

Ang

Please visit my blog at http://aguise.blogs.iva.co.uk/

But I thought interest was frozen when you went into an IVA and was no longer payable as part of the agreement?

Lulu

Dont know the full details - but I believe that if you end up repaying 100% of your debts within the duration of your IVA then you may also be required to pay "Statutory Interest" of 8% (as Aguise says above). Not sure how this is calculated but am sure one of the experts will be able to explain it soon.

It is but if you are able to pay the full amount back then interest is added at about 8%, still a lot less than if not in an iva. Do please wait for other answers to confirm this.
I would also ring your company and check with them.

Ang

Please visit my blog at http://aguise.blogs.iva.co.uk/

Thanks - it new's to me! The thought of paying £1270 for 60 months, plus the extra ad hoc payments and all my inheritance is scary!

Lulu

Hi
If you put interest at 8% into the search it will come up with some posts regarding this. I am a little the same , I could receive inheritance, though I hope I dont, but I just look at it from the point of view that without the iva I would have ended up paying it on the debts anyway, so not a lot of difference. My main aim is to just be debt free, and we will be.

Ang

Please visit my blog at http://aguise.blogs.iva.co.uk/

Some creditors require statutory interest, which is calculated at 8% per annum, to be paid in the event that there are circumstances which would lead to them being paid in full, so this would require you to pay over additional monies but only in the event of a windfall. Check the terms of your own agreement to see if this applies to you.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

Thanks melanie - it only says windfalls to be handed over - no mention of % interest rate per annum etc.

Best will in the land my 94 year nan will not make it until 2012 for me! Still at least I will be clear of debt sooner rather than later and can commence re-building my life!

Lulu

So with no statutory interest, at least you can now easily calculate what you might have to pay to clear the IVA. Probably not the route your nan chose for you, but I a, sure that she is immensly proud of you of a grandchild and does not give a hoot about what you might do with your eventual inheritance. Spend as much time with her as you can in the meantime, she sounds like a lovely lady.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

As Melanie says spend as much time with your nan as possible - life is too short (even at 94!) so make the most of her. I couldn't spend much time with my nan and I still miss her 20 years later.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/