If I pay the full amount before the 5 years is up does the IVA end early?

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kaine449
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by kaine449 » Fri Jan 26, 2018 4:24 am
Hello
I have a Iva with total sums of £7766 including te Iva cost (I’m not sure what there called) I’m in my first year but when I took the Iva out I wasn’t earning a lot as a apprentice so I really struggled, now I’m earning more there taking £76 a week (which ads up to around £15000 after 4 years) if I Pay the full amount before the 5 years is up does the Iva end, I really need help with this as I’m really confused
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kallis3
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by kallis3 » Fri Jan 26, 2018 7:18 am
Hi,

Your IVA will only finish early if you pay back your total debt plus fees and possible statutory interest otherwise it will carry on until the end.
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Foggy
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by Foggy » Fri Jan 26, 2018 7:45 am
As Kallis says, during an IVA we owe the full debt amount, plus fees and possible statutory interest. If we hit that amount before the usual period of the IVA is up it will end early.
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kaine449
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by kaine449 » Fri Jan 26, 2018 7:53 am
Thank you for the reply, so that means if the full on amount is payed including fees and interest within the 5 years by paying monthly it will end? If so that’s a great relief of my shoulders
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Foggy
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by Foggy » Fri Jan 26, 2018 8:00 am
kaine449 wrote:
Thank you for the reply, so that means if the full on amount is payed including fees and interest within the 5 years by paying monthly it will end? If so that’s a great relief of my shoulders



That is correct. Have a read through your proposal and see if it mentions excluding statutory interest --- in mine the interest element was specifically excluded.
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kallis3
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by kallis3 » Fri Jan 26, 2018 8:01 am
If your total debt is paid, not just your IVA amount, then it will finish.
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kaine449
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by kaine449 » Fri Jan 26, 2018 8:04 am
Thank you for the help, I looked into it last night and started panicking thinking I was going to pay over £15000 for a debt that originally started and £5400, this has cleared it up for me perfectly thank you again :D
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Lisa Thomas
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by Lisa Thomas » Fri Jan 26, 2018 2:50 pm
£7,766 with 5 years statutory interest at 8% per annum and costs (estimated at say 15%) will be close to c£13k but will really depend on the costs incurred.
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kaine449
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by kaine449 » Fri Jan 26, 2018 4:48 pm
Lisa Thomas wrote:
£7,766 with 5 years statutory interest at 8% per annum and costs (estimated at say 15%) will be close to c£13k but will really depend on the costs incurred.


I did speak to my Iva provider today and thy explained all this to me, I think I get it now hahah but thank you for the reply
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