Hi, I am currently 12 months into an Iva and am due to inherit a lump sum from my grandmother’s estate. I’ve asked the company about paying off the Iva in full and the figure quoted appears to be approx twice what I will pay back over the course of the agreement less what’s already been paid over the past 12 months. Is this correct and why so?
Many thanks
Richard
During an IVA you actually owe the full original debt, plus fees and statutory interest. Any of this unpaid at the end of the agreed term is forgiven.
An inheritance is a windfall and, under the standard terms is payable in full into your IVA, up to that figure I mentioned above.
So you will be looking at paying the full debt, plus fees of around £1750 (Nominees fees) and 15 - 20% of monies paid into the IVA (Supervisors fees) and statutory interest at 8% p.a.
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
