Can you pay iva off early

Top links Making a will Complaining about social care services What does it mean to have power of attorney? Child abuse - advice and support Advice for people affected by child abuse. Law and courts Legal system Claiming compensation for a personal injury Discrimination Parking tickets Civil rights. Top links Making a small claim Help for victims of rape and sexual violence.

Health Coronavirus - rules you need to follow NHS healthcare Help with health costs Discrimination in health and care services Going abroad for dental care NHS and social care complaints. NHS and adult social care complaints Find out how to complain about your doctor or health visitor. Top links Find your local Citizens Advice Volunteer with us Jobs in our network Press releases Our blogs Read what we're saying about a range of issues.

England This advice applies to England: England home Advice can vary depending on where you live. Struggling to pay - individual voluntary arrangements This advice applies to England Print. If you've already missed a payment Contact your insolvency practitioner straight away - otherwise your IVA may be at risk. When your IVA was set up Maximum length of payment break After 1 January 9 months 1 July - 31 December Up to 9 months - 6 months straight away plus an extra 3 months to take at the same time or later on if you need it Before 1 July 6 months.

Did this advice help? This will depend on the terms of your individual IVA. At a guess it would count as income but you cannot assume that is correct. Even if it is correct, you have an option about whether to take this loan, so you could potentially make an offer to the creditors on the basis that you take the loan because if it is not accepted you will not take the loan.

Until you know this you can have no clear idea what your financial state will be and cannot decide whether the IVA would be affordable or whether an offer would be possible. As they expect you to take anything available to you. Even if you decide against taking the student loan, your benefits will still be adjusted accordingly x.

I think that may well be right — which is why I think she needs advice on the benefit situation. Oh right! Thanks for all the help! At the time my son was barely 1 and I wanted to write off as much debt as possible, be hindered for 5 years with this IVA on my head so I could come out the other side and have a clean slate.

Is there a way I can either get out of this? Please help! At the annual review it sounds as though the amount you pay will go up from here on and you may also owe more money that you should have paid in the last year.

Make sure any increased expenses are also taken into account. It is a myth that it is easier to get a mortgage after an IVA than after bankruptcy….

So if your IVA firm is being unreasonable and insisting you start paying more than you can afford, bankruptcy will not be the end of the world. However, I am now looking at a potential promotion which will give me a substantial increase in salary.

Can you help advise please? Do you have any assets such as a house with equity? How large were your debts going into the IVA? How much are you paying a month? Only asset is my car. If I had stayed with the debt management plan this would not have been an issue as it would have meant I could just pay it off earlier. But am I right in understanding that if my salary increases and my free cash increases that will just increase my payments over the next four years?

Can I request to end the IVA and set up a debt management plan with my debtors? Is this also an option? I have no problem paying what I owe, even though the issue was due to my mental health, it was still me that got me in the mess. Was it explained to you that your monthly payments would increase if your income went up?

Is there any chance of not taking the promotion now but in a years time? You could simply stop paying and then your IVA would be failed after a few months… but there may be a term in your IVA that means your IVA firm can choose to make you bankrupt — although this is rarely done.

I would be surprised if you can argue you were mis-sold an IVA. At the time it looked as though it would end your debts quicker than a DMP and you would have lost the car in bankruptcy.

You can howver ask for the extra overtime payments you have made to be refunded to you — or be reducing future IVA payments. On the bright side, your mental health has improved, you are getting a good promotion and your old debts are at least not bothering you any more. Can I also confirm is it possible to renegotiate the period the IVA is over? If my payments are higher can we renegotiate to make the payments over a shorter period? Also if my IVA does fail, can they still make me go bankrupt with such a substantial expendable income?

Even if the IVA is paid off early it remains on your credit record for the rest of the 6 years so your credit score will not improve much that also applies if you let the IVA fail.

Do you know of any changes that would impact on this as it looks like once I am earning more I could have a discussion with my insolvency practitioner to decide if this is the best option.

Your creditors will probably compare what you are offering with what they will get if the IVA continues. That means they have a veto over the IVA being set up and also that they will have a veto over any future settlement, however much you offer. AND if there is equity in your house your creditors would normally expect an extra year of payments to be added on the end of the 5 years if you cannot remortgage in the last year to release equity. And these numbers would be more if at the end of a year your income had gone up as they would expect your IVA payments to increase….

Also if your IVA is ended early it still remains on your credit record for the rest of the 6 years and you need to know it will be very difficult to remortgage and any credit such as car finance will be very expensive during that time. So the proposed IVA — can I check you have thought about some things. Your IVA firm who is it? If so, what will happen when the finance ends? Because in an IVA you may well lose the lot. Advice please Kind regards Thanks. It is normal to base them on the amount you would have to repay.

You should not go into this IVA assuming things will be OK as you will be able to settle it after a year. I have just read quite a few of these comments and one in particular resonated with me — I also have been struggling with my mental health and I believe I was miss sold an IVA last year.

I was struggling but I think there might have been other options. I notified them of a bonus and salary increase last year.

I needed to use the money pronto for my leave to remain visa, so of course now I have 12 months to pay the additional. This is for her father to take my child to school and for expenses as I live in a different area, cannot drive due to epilepsy, if I moved to another area I would have no work as what I do is very specialised so I will end up in a min wage situation. My boss would likely help me out to get out of this.

But because this would be from my employer they would just take this as extra income and I would have to continue paying for 5 years, is that correct? Are you buying or renting?

Hi Sara — sure. Sorry I had a whole rant there. I do feel like a fool. I had even said I receive bonuses a year so could pay it off early without taking it all in and I say taking in because I did read everything, I was just not in a good head space. For anyone else out there please get a second person to read over everything if you are feeling a bit vulnerable.

Hence me wanting to just pay this off somehow in a bulk amount. I guess in my situation if I was wanting to pay using money from my employer I would need to offer close to or even above the original debt amount less what I have paid?

Also explain that you need the money to pay for the visa and you want your creditors to agree that this can be paid for out of your bonus. Point out that this will happen again in 3 years. Hi, I was wondering if I could get some advice please? I have almost completed my second year of a five year Iva and in the process of an annual review. The Iva is in my own name only as is my house. Both last year and this, creditfix have asked for both my wife and my income and a list of our outgoings.

Even with the current payment, we are very short every month causing my wife to get more and more into debt to make up the shortfall. I am therefore going either fail with my Iva or my wife will end up with unmanageable debt. Our wages never really change from one year to the next. Any advice would be welcome, thanks. Then that may be the problem? There is no particular reason why your creditors should be paid less while hers are being paid in full unless she earns a lot more than you and her debts are low?

Why didnt you look at a joint IVA at the start? She is only paying the minimum payments on her debts which were negligible when I started my Iva.

So how much is allowed for that? Thank you Sara that is actually really helpful. I really needed to get second opinions when I signed up. The Insolvency Practice were helpful today in saying that I should look at a final offer after my annual review, and explained the pros and cons of early settlement.

They said it would be ok for my employer to pay as long as the money goes direct to the IVA and not into my account, and if any debt is incurred this should be factored in.

Anyway all of their calls are recorded and I know I discussed everything with them at the time which is good. When I phone the are so lovely and helpful and I can see how I got sucked in. I think a debt management plan might have been better for me!

I hope I can get out of this and good luck all x. So your IVA started in March , so you have about 21 payments left? Have you retired at your normal pension age?

What did Creditfix say about what would happen when you retired to your IVA? What was your income at work and what will your new pension income be? Yes, it should be 21 months left and I was 66 in February and retired at the end of March when my fixed term contract ended. Creditfix have not said anything about what would happen when I retired. Creditfix should have explained to you what would happen when you retired, because it was clear that would normally happen during the IVA.

If this feels worrying, you could talk to your local Citizens Advice and ask them to help deal with Creditfix for you. My GP refers me to hospital. I am still in treatment. Has your income gone down or your expenses gone up?

I work 24 hrs a week. Because of my circumstances they held the modification for time being but now they asked again. I have 16 months remaining on my IVA. I have always paid in full and on time, and have declared the two bonuses I have received and paid the percentage of them too.

I was only I am now looking to focus on my health, both mentally and physically, and leave my stressful job at the end of this year. This will mean my income goes down considerably — meaning I will probably struggle to pay my IVA next year. I would love to not have this stress and to move on with my life, drawing a line under debt forever after a very very stressful and scary 6 years! Well the problem with making an offer to your IVA is that at the moment your creditors may expect that you will get that bonus.

Is your job ending at the end of the year or will you be resigning? Do you have another less well paid job to go to? Could I offer to send my December pay slip as proof? I will be resigning and going self employed. So the problem is that unless your doctor will say you need to do this for health reasons, or you are sacked or your contract comes to an end, your IVA firm may think you should just carry on wioith your job until your IVA ends.

I think I could easily get a note from my doctor, I have a history of mental health issues and that alongside a chronic illness is definitely enough to mean I need to leave my job. That will help. I suggest you wait until you have left the job, have the last payslip showing no bonus and then consider your situation. You can point out to your IVA firm that either you need a payment break — with an uncertain prospect of ever getting back to pay the previous payment — or you could settle it now for I Have just lost my job and am disabled with a degenerative condition that is only going to get worse.

With my disability, accommodating it is difficult, so really hard for me to find another job. As such my income has obviously gone down and I am in a IVA. I Have asked my IVA payments made over the last 3. One of the creditors is my Ex husband who has been sent the relevant forms. He has contacted me we are still in contact for the sake of our children , and asked what it means as uses legal language. He is happy with the payments I have made to date, and is very understanding, but when he rang the IVA company, they told him they can not advise on voting then tried to transfer him to someone who could explain, and then the phone went dead.

He was on hold before hand for 30 odd minutes. He tried again but he put the phone down after another 40 minutes of on hold music……. How much do you owe your ex and how much have you been paying him? Have you been able to pay all your other debts so far, and it is only the loss of your job that is a problem? No ive deffinetly been in an IVA for 3.

I contacted my IVA company as I was going to offer a full and final, but read through a previous post of someone who was ill and asked them that due to my change in circumstances would they consider the matter closed on my current payment balance for the last 3.

Yes, I get PIP. My debts were including a car around 60K. Getting your creditors to agree to accept that your IVA is treated as completed on the basis of the funds paid to date sounds like a good option for you now. The IVA firm cannot give any advice. Do you think that is correct? I have just found out my salary is increasing from 20k to 26k and i know once they are aware of this they will try make the payment higher.

I am worried as to what that amount will change to so asked them if i was to ask a family member to make an offer to clear the iva and stop the monthly payments what would be acceptable. Or should i just continue to pay it and pray they dont make my payments go up much higher when my new salary starts?

If you have a house with equity, then are you allowing for making an extra year of IVA payments at the end? Unless you can argue your expenses have gone up a lot, then you are going to be paying a lot more to your IVA. How big were the debts that went into your IVA? Any problems? Were you expecting a big pay rise at some point when you started the IVA?

No this came unexpectedly. When is your pay going up? OK, so you can propose to your IVA firm that you offer a settlement of the remaining contributions. But you need to tell the IVA form about your pay rise I am afraid and that may mean they are a lot less likely to accept that amount. Your IVA should say how much of a pay rise you will have to pay in. It iwill be net obviously of tax and NI and pension contributions.

Are you making pension contyributions at present? So the remaining contributions is what would you think is a reasonable offer for them to accept to settle the iva early. I think you should make a list of your expenses that have gone up. And say you should be contributing to your pension — find out what the normal contribution is from your company. Hi its a joint one because we have some in joint names. Also her friend said she might be able to get her a part time cleaning job which does pay My last point is when she gets redundancy do you think we could offer the amount for final settlement.

Probably not. You can find out more or opt-out from some cookies. Talk to your insolvency practitioner straight away - they might be able to change your regular payments. If you still want to cancel your IVA, you can - but you'll still have to deal with your debts, and you could be made bankrupt.

Write to or email your insolvency practitioner and ask to cancel your IVA. You can only cancel if your insolvency practitioner and your creditors agree. They might agree to a cancellation if:. If they agree to the cancellation, your insolvency practitioner will fail the IVA - this means the IVA hasn't worked and will end.

If they don't agree to the cancellation, you could stop making payments. This will breach the terms and conditions of the IVA and cause it to fail. They also need to confirm that they understand how the funds will be used. In both scenarios, we would need to confirm the source of the funds. Your Insolvency Practitioner IP can talk you through how you can make a lump sum offer to your creditors. Again, your IP can advise further. Should your creditors agree to the lump sum payment, the IVA will be closed down once the payment is made.

If you pay off your IVA early, you can get a head start on rebuilding your credit rating. However, the IVA will still stay on your credit report for six years from the date that it was approved.