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 http://foggy.blogs.iva.co.uk