What if we pay more back on our IVA?

Get expert opinion. This is the place for new questions to be posted.
3 posts Page 1 of 1

george673

User avatar
Posts: 1
Joined: Thu Aug 22, 2019 6:39 pm

Post by george673 » Thu Aug 22, 2019 6:39 pm
Hi, so we owe just over 6k on the IVA. My questions is, we pay £85 a month on our IVA, New IVA, We still have 5/6 years left.

I have been reading that if you earn more your pay back more each month. Does this mean the IVA will end sooner rather than later. Say if we started paying 150 back a month or 200 back, well thats £10,000 over the 5/6 years, surely you wouldnt have to pay more than the opening balance of the IVA.

Second question, If you become self employed and started saving money to pay the IVA off in full, can this be achieved also? Or will they be like you cant save you have to pay more each month?

Thanks in advance!

Foggy

User avatar
Forum Expert
Posts: 29459
Joined: Fri Dec 17, 2010 11:14 am
Location: United Kingdom

Post by Foggy » Thu Aug 22, 2019 8:04 pm
During an IVA you owe the full original debt, plus fees and also statutory interest (unless this has been excluded), not just the agreed monthly payments. Any extra you pay in (windfalls, overtime shares, etc) just add to the amount you pay off your original debt. It will not reduce the amounts or the number of payments you have to make, unless you hit that full debt, fees and interest earlier than the end of the arrangement. Only at the end of the term is anything you haven't paid towards debt written off.

If your income increases, so will your IVA payment. If your repayments are calculated correctly you should be unable to save enough to make a lump sum payment.

At £85 per month a good chunk will be eaten up in fees, so there will hardly be a dent in the original debt.
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

kallis3

User avatar
Forum Expert
Posts: 74968
Joined: Mon Mar 17, 2008 4:02 pm
Location: United Kingdom

Post by kallis3 » Thu Aug 22, 2019 8:36 pm
I agree with Foggy.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk
3 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”