Hi;
We are in an IVA, just completing my first annual review. Can I ask: my income has increased significantly as I turned 65 this year, I now receive a State pension, approx. £500 per month plus I still work full time but of course do not pay NI. I'm looking for a hefty rise in monthly payments, but if I changed to part-time work later, would my payment be reduced? Also can an IVA be completed earlier if we pay increased payments on the original monthly calculation?
as i understand it, you either have to pay over the full term as agreed (60 or 72 payments) even if you increase your payments or finish your IVA early by offering a full and final payment that has to be put forward by you iva company, the amount is usually what is out standing on the original amount etc
best wishes
Drew
IVA completion and certificate received 08/10/2012!!!
Your IVA can only finish early if you are lucky enough to pay back 100% of what you owed or if you offer a lump sum.
As your income has increased, your payments also should increase meaning your creditors get a higher return.
If you do subsequently go part time and your income reduces your payments would come down. If you retire altogether and you have no surplus income left it is likely that your IVA would cease at this point with contributions to date accepted as full and final settlement.
Thank you to everyone for responding to my question's. I'm interested in Michael's answer regarding retiring, as I'm 65 & working for the NHS and with the impending threat of job cuts, or ill health, I may not be able to continue working until I'm 69, which is what I would need to do with the 5 year IVA, ending March 2014. As my salary equates to more than half of our income, we could not keep up with the original monthly payment, what then?
Regards, Chris.
You could look to settle the IVA early from redundancy monies or pension payout. In the unlikely event that creditors turn down the offer you would just work on. If you draw the funds down before you make the offer there is a danger this would constitute a 'windfall' so timing is key.
If you are not to receive a payout of any kind and just do not have any surplus, creditors may be minded to accept what has been paid to date as full and final. However, if there is a possibility of receiving a lump sum you could offer enough to creditors to achieve close to the original dividend and I would be confident they would accept that. Speak to your IP and see what they think.
