Questions about Individual Voluntary Arrangements and Insolvency.

Moderators: TalbotWoods, JaneClack

By Gsam
#44784 Hi again,

I posted before about possibly having to move to bankruptcy from my IVA because of additional payments I need to make (yep, my fault for not paying the 50% of additional income when I started getting a better job!!).

Thankfully this doesn´t look like it´s going to happen but now with the increase in my monthly payments to £695 and with an extension to pay off the arrears I´m looking at paying off around £45k by the end of my arrangement.

This is all in line with the terms of my arrangement but my issue is that this is about £5k more than my original debt. Has anyone else been in a situation where there circumstances improve to the extent that they are paying MORE back in their IVA than they owed in the first place???

I know I´m bound by the IVA but just asking to see how common this situation is.

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#44814 hi gsam

not very common. We have about 80 ongoing IVAs at present and only two are likely to result in creditors recieving all their debt paid in full.
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By Shameless
#44821 Oldguy is right.

Its rare that IVAs are paid in full.

And its also frowned upon with IPs because it sometimes happens that clients can end up paying back their debts in full PLUS the IPs costs (which can exceed 10,000) so its a bit mean really.

If you pay 5k more than you owe i suspect your creditors will not get 100p in the £1 back due to the costs involved but they might get 90 - 95p in the £1.

It happens on rare occassions but its not something thats very comman.

We have 550 open IVAs at the moment and we maybe have 2 or 3 that will repay in full plus costs.