Will my inheritance finish my IVA ?

[wizzy79]

hi was wondering if any1 could help me been in iva since 2009 the agreed claim was 38,672.14 and the funds agreed was 22,500 by 60mths of 375 to date i have paid 13.125 i will be inheriting 17,000 i have 2 years left of my iva will this finish the iva or will i have to continue paying for 2 years?

[Niobe]

Hi and welcome.

You will always owe 100p in the pound plus fees and possible statutory interest until the end of the IVA. This money will go towards your IVA and if you can manage the 100p then it will conclude early, otherwise it carry on until you reach the end or 100p whichever is sooner.

[Lisa2009]

You still should be hugely proud of yourself though for doing the very best by your creditors

[carole2662]

How do they work out 100% plus interest. What interest and is it compound or just on the whole amount once. Does that make sense

[plasticdaft]

Is it not statutory interest charged currently at 8%?

[Foggy]

Yes, currently 8% simple (not compound). Some proposals exclude it, so worth checking.

[luluj]

It is definitely worth speaking to your IP to clarify so that you can work out your situation....it is likey that your IVA will continue until 100% of your original debt, plus IP fees and possibly statutory interest...however your proposal doc should confirm this.....

I was in similar position and we had a f&f accepted based on the 92p in pound plus IP fees....no statutory interest was paid......please speak with your IP for specific case advice.

[MelanieGiles]

Statutory interest is pretty rare these days, andc the full inheritance sum will not clear the IVA without the agreement of creditors, but it seems that the duration will be significantly reduced and creditors repaid in full.