Can someone please help? I am currently in an IVA with Payplan (what a mistake they were) and I have paid £2,993.26 of my proposed £4,962.33. The IVA is due to finish in July 2020
I had an amazing year with my work last year and im due to receive a £40,000 bonus this month, I have asked Payplan what it would cost to settle my IVA early and they said they need to get a 100% fee plus interest and fees. I have read online this is likely to be some ridiculously high figure and much more than I have left to pay.
Is there any other way I can settle early or get out of this? It looks like im going to be in a situation where I give Payplan half my bonus less my 10% (Which I think is about £11k) or I pay them a high amount of money with this 100% figure! (I understand this is all my fault in the first place for getting in such a mess!) Im just wondering if there is a third option!
That 10% figure is 10% of you monthly base salary, NOT 10% of the bonus.
A settlement figure would be the balance of the full original debt, plus fees of around 15% plus £2k and interest at 8% p.a. If you are in a position to actually repay your debts, why not go for it ? Get the whole thing done and dusted.
The third option would be to allow them to take half the bonus then propose a full and final settlement, from your share, based on the amount of payments left. Without the relevant figures I cannot do a comparison, but I am sure you will be able to.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
