Improves from £1,500pm to 2,800pm

4 posts Page 1 of 1

Mike121

Posts: 2
Joined: Sun Jun 23, 2019 12:45 pm

Post by Mike121 » Sun Jun 23, 2019 12:51 pm
What is the maximum debt repayment by joining the IVA program? Is it 100% of my debt or you can taking as much as you want if my financial situation improves?
For example: I earned £ 1,500 a month and had expenses of £1,400 so I could pay IVA £100 per month. After a year, my financial situation has improved and I earn £ 2,800 and my expenses have not changed so I have £ 1400 left in my pocket, which I have to give 50 perceny of this extra £1400 to IVA which gives £ 700 per month.
My total debt is £ 12,000 and agreement from creditors to pay £ 6,000 over a 60 month which gives £ 100 a month. Now I have to pay £ 700 a month plus all the other bonuses they take away from me too! Which means that I pay over £ 30,000 for the next four years !!! Is it possible?
Regard Mike

Foggy

User avatar
Forum Expert
Posts: 28965
Joined: Fri Dec 17, 2010 11:14 am
Location: United Kingdom

Post by Foggy » Sun Jun 23, 2019 2:09 pm
The maximum amount you would have to pay, if you could, would be the full original debt, fees and possible statutory interest. On a debt of around £12,000 this would be somewhere around £17,000 the IVA will end early if you hit this amount.
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

Mike121

Posts: 2
Joined: Sun Jun 23, 2019 12:45 pm

Post by Mike121 » Sun Jun 23, 2019 3:32 pm
Thank you very much for the answer but I have one more question. My new job is temporary so what will happen and I know that happen if one day I come back to my earlier earnings or even lower? I will have to wait until the next settlement? I will not be able to pay such a high amount during this time.

Foggy

User avatar
Forum Expert
Posts: 28965
Joined: Fri Dec 17, 2010 11:14 am
Location: United Kingdom

Post by Foggy » Sun Jun 23, 2019 5:01 pm
The IP should be able to reduce your payment when and if your income goes down. The creditors might not agree to a reduction much below the starting figure, but if, in the meantime, you have been paying more they may well be sympathetic. They were in my case.
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
4 posts Page 1 of 1
Return to “Complaints procedure”