Settlement or increase payments

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Ivanka
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by Ivanka » Thu May 03, 2018 5:10 pm
Help needed please.
Background _ Had 12k debt. IVA approved at 60xpayments of £110.77. t Total repayable of about £7.200.
Currently paid off £996 after nearly 8 months.

Conundrum: My wage is about to increase significantly. Probably be able to pay 400 a month. This would mean I will payback what is owed of the original 11k before end of the IVA.

However, I may be able to get a payment of about 6k off a family member. Which would write off the amount that the IVA repayments were agreed for.

Can anyone explain the best thing to do here?

Pay off the outstanding 6k and expect the IVA to end early before announcing a pay rise.
Or hang on until the oayrise happens and then just increase the payments and stay in for the long hall.
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Foggy
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by Foggy » Thu May 03, 2018 5:17 pm
If you go on to increase payments the IVA will not cease until you have paid back full original debt, plus fees and statutory interest. The increase in IVA payents will only be by half of your pay rise, not all of it.

On the face of it a full and final ( do not call it a settlement) might be better.
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luluj
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by luluj » Fri May 04, 2018 3:39 am
Great news on pay rise but as foggy suggests your iva will conclude until the full original debt has been repaid where increases in salary permit a higher return to creditors.
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