what happens-increased payments

[chris31]

Hi im due my 1st yearly review and looking at the I.E forms, i may have to pay an extra £50/ month.

Im wondering what happens with this money.
Last year i was working overtime and wanted to pay extra and was told i couldn't because it was a court set fee.

Does it pay off the debt earlier or do the creditors just get extra money.

any help would be usefull.

[Shining]

Hi Chris and welcome to the forum. Creditors will get a higher dividend I would expect if you need to pay extra, have you ensured you've included any increase in your expenditure as often this goes up a lot more than our income. All the best for your review x

[kallis3]

Hi Chris and welcome to the forum.

If you were able to pay extra last year, then you should have been able to do so. It is usually worked on 10% and 50/50 or a straight 50/50.

Has your I&E increased at all?

Even though your payment was set originally, it is not set in stone, and unless you can pay your creditors in full then your IVA will continue for the full five years. Your creditors will just receive a higher dividend.

[chris31]

Wow thanks for the fast replies,although the news doesn't particulary cheer me up, it certainly makes things clearer.

thanks again
chris

[kallis3]

Which company are you using?

[chris31]

a company called x-debt solutions

[kallis3]

I've not heard of them.

Exactly what does it say in your proposal about extra payments?

[chris31]

"60 combined monthly contributions with my partner commencing at £283 as shown in the income and expenditure schedule payable over a maximum of 6 years.The level of contributions is subject to an annual review.Failure to pay unsecured creditors the anticipated dividend as shown on the outcome statement will not be a default of the arrangemment"

thats all i can see about it

[kallis3]

Does it say anything on there about overtime and/or bonuses or windfalls?

[chris31]

i see nothing specific mentioned about those at all

[kallis3]

I'm surprised, as I'm now two years into mine and there are specific requirements regarding overtime etc in my proposal.

Hopefully one of the professionals will be along to help.

[MelanieGiles]

I would check your Chairman's Report - there may well be some modifications in there which you would have had to agree to on the day of your creditors meeting.

How strange that your IP firm told you that you could not pay more money into the IVA. Although this would not reduce the period, it would mean that your creditors would get more money. Creditors may well be interested to hear about this policy within this firm!

[chris31]

If im in an IVA , can i still go for bankruptcy ?

At the moment this is sucking everylast penny out of me, i know its all my own fault but there seems to be no end to it, ive no social life, havent been on holiday in 7 years. and am now considering if bankruptvy would be a better option.

Do you have to sell all your possessions etc

[MelanieGiles]

You can go bankrupt Chris, and apart from material assets such as equity in properties, cars, endowment policies, investments and savings your own domestic assets will not be affected.

Why not see if your IP can reduce your payments to a more affordable level. How long have you been in your IVA, and don't forget that you may have to pay contributions in bankruptcy for three years as well if you go down that route.