Can I overpay on my IVA arrangement?

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rich783

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Post by rich783 » Mon Jul 29, 2019 5:57 pm
Hi,

I'm looking to settle my IVA as early as possible - is the only way to to do this by offering a set amount? or can I overpay on my arrangment?

Foggy

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Post by Foggy » Mon Jul 29, 2019 6:03 pm
You cannot overpay the agreed monthly amounts as such payments will just be added to the dividend as a bonus for the creditors. To end an IVA early you need to make a one off lump sum payment, based upon the amount left to pay over the term.

If your IP gets wind that you could afford to overpay, were it possible, he / she would increase your monthly payments into the IVA, as you are supposed to be paying what you can afford.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

rich783

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Post by rich783 » Mon Jul 29, 2019 6:42 pm
Thanks for reply 👍🏾
Another question - if I wanted to break from my Iva and pay my creditors individually is this possible? My circumstances have changed so feel able to manage the debt independently now - am I locked in?

Foggy

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Post by Foggy » Mon Jul 29, 2019 6:49 pm
You can terminate the IVA, or simply allow it to fail. However, the creditors are not obliged to co-operate with any proposals you might then make and could just go for enforcement of collection. It is a risky manouvre.

Even if the IVA ends early, one way or another, your credit record will still be shot for six years from the start of the arrangement.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

rich783

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Post by rich783 » Mon Jul 29, 2019 7:02 pm
It sounds like lump sum is the way forward then. Thanks for your advise - I’ve been trying to get simple answers like this from my Iva people for months !
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