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Posted: Tue May 29, 2007 10:27 pm
I already have an IVA that I pay 80% of the debt back on £92,000. I have just secured a new job and pay will substantially increase by about £10k a year. I realise that I will have to pay more which is no problem, will I only have to pay 100% of the debt, if so does that mean I may actually have some money left over??
Posted: Tue May 29, 2007 10:48 pm
hi keith welcome to the forum, if your change of circumstances means that you can now offer back 100% of your debt, then you will also have to remember that on top of that will be your IP's fees ,i would have a look at your proposal to see what their fees are to give you guidance, i know what will also be told to you that the interest that would have been charged in the 5 years had you not been in an iva would have been considerably higher than the IP fees, hope this helps sure i will be corrected if wrong.
Please view my blog at: http://scaredkez.blogs.iva.co.uk/
Posted: Tue May 29, 2007 11:17 pm
First of all please review the terms of your specific proposal, to see whether there is any provision for statutory interest to be paid, in the event that you manage to pay your creditors in full. Statutory interest runs at 8% per annum, and it would be unusual to pay this in an IVA, but do check to be sure.
If no interest is payable, then you are likely to repay your debts off earlier as a result of your pay-rise - which must be a nice feeling! And even nicer to know that you can start to enjoy the rewards of your own labour at an earlier point as well!
Well done on having such a positive attitude to your IVA settlement.
Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
For further details contact me at http://www.melaniegiles.com
and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk