Can you pay more than the original proposal?

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Helly78
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by Helly78 » Fri Jan 04, 2019 10:24 pm
Hi all

First time posting here.

I started my IVA through Payplan in August 2015 with a debt of £26529.01. My proposal had me paying back in total £33486.85 which includes fees and the equity release at end of 5 years of £7652.52.

However, because I have been promoted and got new better paid jobs my payments are much higher and I estimate that by August 2020 I will have paid over £35k to my IVA.

First question is can they keep taking money once I have paid the original agreement?

Second question is if I have paid this at end of 5th year can they still expect the equity release as well?

Thanks in advance :D
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luluj
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by luluj » Sat Jan 05, 2019 3:10 am
Welcome to the forum !

Your iva will end prior to the proposed end date if you have been able to pay 100% of your original debt, plus fees and potential statutory interest.

Equity release will only be taken if you have not reached this.

Your credit file will remain effected until the 6th anniversary of your start date to your iva, however would be amended to say iva completed and creditors would update their credit files to reflect payment made and cleared.
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Foggy
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by Foggy » Sat Jan 05, 2019 10:22 am
As Luluj says -- the IVA will cease if you hit that figure of repaying the full debt, plus fees aand statutory interest (which is excluded in some cases) earlier than the anticipated end date.

On a debt of around £27k, you would be looking at something like £6k in fees. Adding in statutory interest, you would be looking at an additional £8k or £9k over the 5 years (probably a bit less as it will, in reality, be calculated on the reducing balance). So the magic figure would be around £ 41,000 to see the arrangement end early due to full settlement of the debt.
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Lisa Thomas
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by Lisa Thomas » Mon Jan 07, 2019 9:47 am
The answer is explained in my short video here:

https://youtu.be/h4dozq9aGak
Helly78
Posts: 4
by Helly78 » Mon Jan 07, 2019 11:06 am
Thank you all so much for your replies. Much appreciated
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