I am new here although have been in an IVA for almost 5 years.
My wife and I have an interlock 6 year IVA (thanks Northern Rock), with debts totaling £56230.
Along with our agreed monthly payments I havee had the good fortune to earn some bonuses which have also been paid in as well as some PPI repayments, reclaimed via the IVA Company (wife had a repayment of £11000 and I had a repayment of £4500). This has meant that we have now repaid £50735 and assuming no further bonuses occur it is likely we will pay £57600 into our IVA which is great.
However, I have a hypothetical question. As it stands we have repaid £50000 I If i was to get a windfall of around £50000 in the next month or so what happens to it? At the start of the IVA i would expect to have paid the whole lot into my IVA but as i am now near the end what am i expected to pay. My understanding is that I would have to repay any remaining debt in full + PPI Fees + IVA Fees.
would this mean I am able to
a) finish the IVA early
b) keep some of the money
With the 6 year term agreed at the start (as NR tends to do) be aware that you might still get a 12 month extension in lieu of equity, so don't buy the champagne yet! Again, if you hit that magic figure of debt, fees and interest before or during the extension the IVA will end early.
If creditors are not entitled to, or waive their right to the interest then this will change the figures dramatically and perhaps only £15-£20k will be needed form the windfall.
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