Can I pay more to complete IVA earlier?

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max577

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Post by max577 » Tue Apr 28, 2020 11:21 am
I have been in a going through an IVA since Feb 2019 with Credit Fix. I have heard absolutely nothing since the day I started.

Since then I have had a pay rise and my partner has moved in so now the bills are split. I am currently paying off £85 a month off IVA. I am left with around £850 disposable income after everything is paid. I want to pay more and get this thing dealt with ASAP so I can moved on with my life. Looking back on my decision I should have got advice from the CIB but I had no guidance.

Does anyone know if it is possible to pay more to complete IVA earlier, if so would IVA remain on credit file for the 6 years anyway?
Can anyone advise of options to get myself out of an IVA?

Foggy

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Post by Foggy » Tue Apr 28, 2020 11:29 am
CF should have been doing reviews and you should have been informing them of income increases. This would have meant that your IVA payment increased, in line with your disposable income. There could now be considerable arrears. Your review was due in Feb of this year and you need to remind CF of this --- in the current pandemic it could have been missed in the chaos !.

Increasing the IVA payment does not shorten its term, unless you manage to pay back the full debt and fees first. It is possible, however, to make a lump sum as a full and final offer .... basically the balance of agreed payments.

To get yourself out of the IVA you either have to pay the full debt and fees, as well as possible statutory interest, make a lump sum offer based on remaining payments, or allow it to fail, which would allow creditors to enforce collection of the debts due to them.
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

max577

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Post by max577 » Tue Apr 28, 2020 1:25 pm
So where would the arrears come from if my payments have been paid on time?

So currently I have £3200 left to pay. So is it possible that I could offer this amount? If I was to settle this and pay a lump sum of the IVA wouldn't this remain on my credit file for the full 6 years anyway? For this reason wouldn't it just make sense to stay in the IVA.

Also if I let it fail then I assume that its going to remain on credit file regardless for the 6 years meaning I cannot get mortgage, credit cards etc.

Apologies for the questions, I just feel like I should not have gone into an IVA to start with!

kallis3

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Post by kallis3 » Tue Apr 28, 2020 1:45 pm
It is going to stay on your file for the full six years regardless. I believe that Foggy is referring to possible increase in payments from your annual review.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk

Foggy

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Post by Foggy » Tue Apr 28, 2020 2:32 pm
You need to read through your agreement where payments will be explained. At the start of the IVA you agreed to make (usually) 60 payments ... these were initially set at £85 per month. In the agreement you agreed to increase this payment as and when your income increased ( 50% of overtime, bonus payments and increases in basic pay ). If your disposable income is now calculated at £850 per month, so an increase of £765 compared to when you started, the payment should be increased to £467.50 ( £85 + half the increase in income). Have you also been getting any overtime and bonuses ? These should also be declared and about half paid to the IVA.

By arrears I meant the difference between what you have been paying and what you should be paying because of the increased income that CF do not yet know about.

Left to pay, on the revised income would not be the £3.2k (based on £85 payments), but more like however many payments left x £467.50 (or whatever CF decide is the new payment).

Regarding the lump sum ---- if you had made a F&F offer before your pay rises, it would have been based on the £85 per month. Now, it will be based on £467 a month ..... the benefit of a lump sum payment is that, if your wages went up again by a great amount, it would all be yours, rather than having to increase your payments again. And, yes, it will stay of file for the full 6 years.

If you let the IVA fail -- it will still be on file for the 6 years and creditors will chase you for the money, maybe even bankrupt you, if worth their while.
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
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