My IVA was set up for an extended term due to the level of debt and expected repayments. (6 years 2 months) since I’ve been in my Iva my earning and repayments have increased. It is expected I will have paid the original outcome with 15 months still remaining and if I continue to pay in at increasing levels as I currently am the full debt will have been more than settled at final term. If we had known the level of payments would increase I’d have been more likely set a 5 year term
My question is as an IVA is advertised as a debt write off can the term ever be reduced?
The term can only be reduced by a full and final offer, based on paying remaining payments in a lump sum, or a full settlement, based on paying the outstanding balance of the original debt, plus fees and possible statutory interest. Alternatively, by hitting that total of full debt, fees and possible interest early.
An IVA is not designed to write off debt --- it is designed to allow you to repay as much as possible in an affordable way. Hence the increase in payments when circumstances improve.
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