Why have I got to pay 100p in the £?

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sandra811

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Post by sandra811 » Sun Mar 10, 2019 10:49 am
Why have I got to pay 100p to the pound in my Iva when there is government legislation to write off some of the debt

kallis3

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Post by kallis3 » Sun Mar 10, 2019 11:14 am
If you can pay off all of your debts during an IVA you will do. You have no guarantee you will have some debts written off.

It's to be admired if you can do that.
http://kallis3.blogs.iva.co.uk/
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kallis3

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Post by kallis3 » Sun Mar 10, 2019 11:15 am
Just to add it is nothing to do with government legislation.
http://kallis3.blogs.iva.co.uk/
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.

Foggy

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Post by Foggy » Sun Mar 10, 2019 12:02 pm
The point of an IVA is to pay back what you can reasonably afford ... NOT to pay back all of the debt, and certainly not to pay as little as possible. I would say most seem to pay around 30% - 50% of the debt, a few do manage all of it --- but, hey ..... when we took out the debt that is what we intended to do anyway -- pay it back.

And, even if you hit 100% payback, you still have not had to pay 5 years of contractual interest, so you are still coming out ahead.
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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Mrs_Brown

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Post by Mrs_Brown » Sun Mar 10, 2019 7:36 pm
I was aware of this rule before my IVA, and it was emphasised in my data gather call from Stepchange. In all honesty, if I had received any windfall outside of an IVA, I would have used it to clear debts. I view it as if I do get any kind of windfall now, paying off 100p in the £1 (plus the additional fees and interest) I wouldn't mind it because it has taken a huge pressure off me at the moment. Without the IVA I wouldn't have coped financially and would probably have had a nervous breakdown.

jayne270

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Post by jayne270 » Mon Mar 11, 2019 6:33 pm
My IVA also stated that I would probably end up paying back 100p in the £1 and I didn't mind as I knew that being in an IVA meant that the level of debt would not keep on increasing with interest, as it had been before, and I could also see a light at the end of the tunnel instead of continually borrowing off Peter to pay Paul. I was lucky enough to be able to finish my IVA after 2 1/2 years paying the full amount back (plus fees etc) and I don't regret the IVA one bit as it made me learn to curb my spending and I ended up debt free afterwards.

luluj

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Post by luluj » Tue Mar 12, 2019 3:02 am
If you can afford to repay 100p then so be it ... your debt will have been far more with added interest so I would be extremely grateful of the iva and the conditions within it as you would have been paying your debt back far longer than the term of the iva.
Sharing from experiences of dealing with debt

There is a solution for everyone .... Just need to stay positive !

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Lisa Thomas

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Post by Lisa Thomas » Tue Mar 12, 2019 9:55 am
Are you in an IVA or exploring it as an option?

As the others state you always owe 100% of the debt together with interest and costs but you pay back what you can afford of it.

If the IVA completes successfully then any unpaid debt at the end of the term is written off.

Have you taken any advice from an IP? They should be able to explain this to you in more detail and suggest what level of p/£ you might have to offer to creditors in order for them to find your proposals attractive enough to accept.
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk
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