What happens to extra income in an iva?

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Post by mel990 » Wed Sep 11, 2019 6:58 pm
While in an IVA, if I received a substantial salary increase or bonus, the terms state that my payments would need to increase. If this was the case, would I be making increased payments over the remainder of the 60 months thus paying more than the agreed pay back sum at the beginning of the IVA, OR would my IVA be completed early?


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Post by Foggy » Wed Sep 11, 2019 7:16 pm
Any increase in payments will result in the creditors getting more of the debt repaid, they will not shorten the IVA, unless you manage to pay in the full original debt, plus fees and possible statutory interest.

The object of the IVA is to pay back as much as you can reasonably afford, NOT the initially estimated amount, which is actually more a minimum expectation, not the 'agreed' amount.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
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