Hi, I’m nearly 2 years into my Iva and my monthly payments have been £100 a month, part of my Iva terms were to apply for child maintenance which I have done and finally will be getting payments, my Iva states that I have to give 60% of my child maintenance towards the Iva, that is fine but then that would make my payments go up to roughly £370 a month, does that mean my Iva would be paid off earlier or would my initial amount to be paid back of £6000 go up? Also what would I need to do if I wanted to pay off the Iva in full if a family member wanted to pay the outstanding balance, is the outstanding balance the total of the debt owed before the reduction or after?
I am no expert but I have been through an IVA. Your total debt will be your original debt plus fees and statutory interest. I have seen that the statutory interest part sometimes is excluded but that will be documented in your paperwork. Regarding a “ Full and final offer “ ( which is what you need to offer ) is your new payment to IVA multiplied by the months left to pay. If you have more than £5000 equity of your share of a property you will also need to add a further twelve months of your payment now to your “ Full and final offer “ I offered £200 more than the sum of these totals and “ Full and final offer “ was accepted. I am sure the experts will reply tomorrow to give a better explanation. Hope that helps a bit.
Hi. Increased monthly payments do not reduce the length of the IVA, they increase the amount the creditors get back. The IVA will continue to the bitter end, unless you hit the full debt, fees and possible statutory interest.
To end early, there are two ways: Settlement - which means to pay what's left of the original debt, fees and statutory interest (if payable), or, the more usual way: Full and final offer - which is based on the remaining payments ( plus 12 if you are a home owner with more than £5k of potential equity). This can sometimes be rounded down a little ( but, the higher the better).
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
Child maintenance is deemed an income- make sure your "child" expenses are fully listed in your expenditure and you note every line of additional costs, that your increased monthly payment is absolute minimum.
Don't forget additional costs for home schooling... has your electricity consumption increased? Were children getting free school meals - has your household expenditure increased? Just make sure everything is listed.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !