www.iva.co.uk

Hi

My husband has an IVA and originally agreed to repay £350 per month for 60 months (£25200). He is now on year 5 of his payments. His salary has gone up over the last 5 years as he got in debt when he was very young and he is now in a more senior job.

He has now repaid about £22k as his monthly instalments have almost doubled. His IVA is due to end in August next year. Based on current instalments he will have repaid the full amount in about March 2010.

My question is does the IVA keep going for the full 60 payments or stop when the original sum is repaid if this is sooner due to these circumstances? If it doesn't automatically end, do we need to make a settlement offer to finish it early, such as next months payment plus £2k or similar if we can get family to loan it to us? What amount would you recommend to settle it?

Any advice would be appreciated. I understand that settling early doesn't positively affect credit rating etc but it will be a massive relief to him to have it all finished.

Thanks

You wont pay anymore than the full debt to creditors (100p dividend) plus your IP fees, so I assume that if its all been paid in full by March 2010 then thats when it will be completed.

Remember to include fees when trying to work out what he's paid.

How much did he actually owe to creditors? The IVA will not finish early just because he has made the level of repayments intended under the arrangement - it will continue until the end if the debts are higher, regardless of the fact that he has increased his payments.

Hi

Thanks for all of your help. I think the original debt was £30k so I suppose he will keep paying until the last payment to get closer to repaying the original debt sum.

If this is the case can we still make a settlement offer? If so what amount should we offer?

Thanks

I cannot see the benefit of making an offer of early settlement to creditors during a final year. You will probably end up paying exactly the same amount - if not more - than you would if you just continued with the contributions.