will increased wages reduce length of iva?

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josh780
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by josh780 » Sat Sep 08, 2018 6:47 am
If your wages improve drastically can the Iva take all off this extra money an will they cut short your 5 years if you pay it off earielr or will The monthly payments go up but still be spread across the 5 years ??
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kallis3
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by kallis3 » Sat Sep 08, 2018 8:23 am
Your IVA won't finish early unless you pay all of your original debt plus fees and possible statutory interest. Pay rises are usually dealt with at your annual review and only a percentage is taken.
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Foggy
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by Foggy » Sat Sep 08, 2018 9:01 am
You generally only "lose" around 50% of extra income to the IVA in increased payments due to a pay rise and often a little less than half for ino due to overtime or bonus payments. This is all detailed in the proposal document.

The arrangement will only finish early if you agree a full and final offer ( lump sum to cover future agreed payments from friends or family) or, if you manage to pay, as Kallis mentions, the full original debt, plus fees and possible statutory interest.
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Lisa Thomas
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by Lisa Thomas » Mon Sep 10, 2018 8:24 am
Assuming the 'overtime' 10/50/50 term applies to your IVA then you could use your share of the extras to propose a F&F, depending on the sums involved.
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Lisa Thomas
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by Lisa Thomas » Mon Sep 10, 2018 8:24 am
My video on F&F's is here:

https://youtu.be/h4dozq9aGak
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