My IVA mentions that if it is paid within the 66 months period from the start, there will be no statutory interest payable. Will this condition still count if the IVA is extended due to equity release?
I have just made the final payment to my IVA after 72 months and have paid in more than 100p in the £ with bonus payments and PPI.
It depends on the exact wording of the relevant clause as well as how your IP intends to interpret it.
In any event, forgetting statutory interest, the sum payable to achieve 100 p in the pound debt repayment, you also have to cover the fees, as these have precedence over the debt.
I would go out on a wing and a prayer and try ........ calculate what you have paid in, offset fees and disbursements (fee structure will be in the Chairman's Report of the opening creditors meeting ---- but will be Nominees fee (something like £1750) disbursements (around £500) and Supervisors fee (between 15 and 25 % of everything paid in -- not forgetting PPI paid will be net of the claims company fee ( typically 30%) ). If there is a surplus, ask for it to be returned.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
7.8 Should any increase in contributions in accordance with the foregoing result in payment in full of the amounts due to my creditors at the date of approval of my Arrangement, together with the fees and costs as specified in this proposal and the attached Appendices, prior to or at the end of the period of the Arrangement specified in Clause 10.4, my Arrangement will be deemed to have been satisfactorily concluded and no statutory interset will be payable in addition to those amounts so claimed.
10.4 Subject to the provisions of Clause 7.8, I propose that the Arrangement will last for a period of 66 months from the date of approval of my IVA (or until payment has been made in full to my creditors, if earlier) in order that my Supervisors can collect all contributions specified in paragraph 7.1 of this proposal, agree all claims and make a final distribution to creditors. This period may be extended at the discretion of my Supervisors. If at any time it becomes clear to my Supervisors that all matters under the Arrangement cannot be completed before the expiration of this period, then the duration of the Arrangement may be extended in accordance with the standard terms and conditions.
The letter of the clause specifies 66 months with no reference to the possibility of extension or reference to the equity release clauses.
The letter of an agreement often contradicts the spirit of that agreement, but the letter overrides spirit in law --- whether your IP follows the letter or the spirit will be up to him or her.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
