IVA overpayment

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ccgunns

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Post by ccgunns » Thu Apr 22, 2021 3:00 pm
Hi all,
I agreed to an IVA in 2017 which valued my IVA at £7740, and was agreed to by my creditors.
Over the last 4 years my monthly payments have risen to over double the initial payment, and as such, I’m now £500 short of the agreed IVA value. Is this right, as if I continue I will pay the total debt I had before commencing my IVA.
Should the agreed amount of £7740 be the total amount I repay as agreed by my creditors?

Foggy

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Post by Foggy » Thu Apr 22, 2021 3:21 pm
No. The amount of IVA payments is not the total due and the IVA has various clauses to increase your payment, as affordability increases --- the object is not to just pay back the agreed total, but as much of the original debt and fees as possible. You still owe the full debt and fees and only what is not repaid at the end of the agreed term is then written off. Your IVA will only end early, by virtue of being 'paid up', if you pay in the full original debt plus fees and possible statutory interest.
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

ccgunns

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Joined: Thu Apr 22, 2021 2:54 pm

Post by ccgunns » Thu Apr 22, 2021 4:03 pm
Thank you. I’ll probably repay all my debt by the end then which is good

Foggy

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Post by Foggy » Thu Apr 22, 2021 4:19 pm
Thu Apr 22, 2021 4:03 pmccgunns wrote:
Thank you. I’ll probably repay all my debt by the end then which is good
Always a good feeling and, in the meantime, you still have been protected from collection and enforcement proceedings and, hopefully, the pressure has been lifted. Of course you will also have been spared the contractual interest charges as the debt will have been frozen at the start of the IVA.
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
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