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Hi. Searched a lot of the forum but still unsure. 2 queries - I am 20 months in and paying 1k per month on debt of just under 100000 (seems high compared to most on these sites!) Is there a ceiling percentage of how much is paid in? Also, If someone was luck enough to gain a windfall, can the IVA be paid off early and is the settlement loosely equivalent to amount of IVA total left or original debt minus payments made?
Many thanks.

Hi Tidar,

I am not an expert on this, I am also in an IVA. From what I gather, what you pay depends on how much disposable income you have after paying your priority debts, clothing allowance etc. When you calculated your income and expenditure, whatever figure was left over is what you would pay. Your payments do seem high though as you are paying back 60% of your debt, however if that is what you had left over then that is what you would have to pay. The rest of your questions I wouldnt be able to answer unfortunately.

Hi tidar and welcome to the forum

Your IVA payments have presumably been set at an affordable level in conjunction between you and your IP - or more likely these days by creditor modification. Yes you do seem to be paying higher than average contributions, but presumably you earn a reasonable salary - and you have higher than average debts. The ceiling percentage of how much is paid in can be equated to 100% plus IP costs plus statutory interest at 8% per annum (if your proposal provides for this).

Windfalls can potentially shortern the period of an IVA, but only if you manage to achieve the 100% formula I have referred to above. Payments that you have already made will be deducted from this sum.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk