95%

[Phil1024]

Is it normal to pay back about 95% of your debt during the whole term of the IVA? Yes, this amount does include all fees to the IP, however knowing that I will always have difficulty getting the best rate of mortgage and other best rates for credit, was it really worthwhile?

Yes I must admit 4 years ago when I started up I didnt know what would happen in the future but since then my pay has rocketed and so have my IVA payments?

Who knows in a years time I might have payed back more than my total debt, is this normal?

Phil

[s.b]

Hi Phil
Yes I think so, I'm paying back 100% of my IVA including all fees so it will finish early. This was same as you, due to big payrises and big rises in IVA payments - now £900 per month which I don't like to dwell on!!
Susan

[jamesfalla]

Hi Phil

You must remember that an IVA should not be viewed as a way of not paying all of your debt. Rather it should be seen as a way of repaying as much as you are able within a fixed period (usually 5 years). This means that if your circumstances improve during your IVA you will be expected to pay up to 100% of the debt you owed + your IP fees.

This is generally no different than paying all your debt back + the interest that you would have incurred if you had not entered into an IVA

James Falla

Expert in IVA, Bankruptcy and informal Debt Management solutions for over 10 years.

For more information visit www.jamesfalla.com and visit my blog at: http://jamesfalla.blogs.iva.co.uk

[Phil1024]

Yeah but surely it would be more beneficial to pay all my debt + insurance than an IVA which will affect me for the rest of my life when applying for any form of credit.

[MelanieGiles]

You basically pay back as much as you can afford to in an IVA - if that is 100p in the £, that makes a very good IVA all round! However, whenever I see a client offering a very high dividend, I do wonder whether an IVA is the best solution for them. If you could get creditors to stop charging interest under a DMP arrangement, you could potentially pay more to your creditors over the same period, or even pay them if full without incurring IP fees.

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

[jamesfalla]

I could not agree more Phil. If you are in a position to pay back 100% of your debt without needing an IVA, then it is not only better but you actually could not use an IVA because you would not be insolvent.

James Falla

Expert in IVA, Bankruptcy and informal Debt Management solutions for over 10 years.

For more information visit www.jamesfalla.com and visit my blog at: http://jamesfalla.blogs.iva.co.uk

[Phil1024]

I presume that once you have entered into an IVA there is no way back.

[bagpuss]

i might be wrong so forgive me but surely without the IVA the debt would have been bigger cos of the interest, if the interest is frozen while on a IVA then the debt amount remains the same, but without the IVA every £ you paid back so much would have gone on the interest.

I think the plus here is that its a set time period...so you can see light at then end of the tunnel.

Interest is stopped.

Security that the creditors aint going to go back on there word.

like i said i could have all this wrong..x

Angie xx


My IVA Story......http://bagpuss.blogs.iva.co.uk/2007/09/ ... iva-story/

[Adam Davies]

Hi
Angie is correct,even if you end up paying 100p you will have saved on the interest,hassle and uncertainty even with IP fees in the vast majority of cases.
Phil and s.b have both had large pay rises during the course of their IVA,nobody could have anticipated that.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp