Hello,perhaps someone coukd advise...I have an IVA for 3 years now and since the beginning of IVA my income has increased. As a result my payments could be quite high. I am now thinking that IVA was not the best solution for me at the time but i was very confused back then so took it to be debt free. My question would be: the amount i have left to pay is around £3500,time to repay is 2 more years. Would IVA people take monthly payments based on the amount left to pay or purely on my disposable income amount? For example i can jow afford to pag £300 a month but if i will pay this amount for two years i will pay wayyy more then £3500. Thank you for the help
If my experience is right, you will pay back 100% of the original debt plus fees and possible statutory interest. If that takes less than 5 years then your IVA will be finished.
Just remember, what you pay back is based on the whole original debt and not 60 x what you agreed as a monthly payment at the start. For example. If you owed £10,000 at the start and you agree to pay £100 pm for 5 years (£6000) then you actually owe £10,000 plus fees, etc.
I'm in the same situation. Took the IVA when things were bad. Then things got better. When I started, I was predicted to pay about 50% of the original debt over 5 years. I'm now looking at paying 100% plus fees in about 4 years and 10 months.
How much was the original debt before the IVA started ?
Things often change over a five year period, but that doesn't mean the IVA was the wrong thing at the time. For most, they never get an income increase enough to make that sort of difference ---- but if we all had the ability to see into the future, maybe we would make different choices.
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