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I have been paying my iva for nearly a year now and i have just recieved a promotion which has more than doubled my income. my creditors can take 50% of any extra earnings but I calculate that i will be paying back more than 100% of what i owe at that rate. does anyone have any knowledge of what usually happens in these circumstances?
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THis is one of the disadvantages of an IVA, you borrowed a sum of money, got stuck, and agreed to repay as much as you could sensibley afford over a fixed term. In return the creditors agreed to freeze the interest and accept this arrangement as oppose to bankrupcy. You should work out what you would have paid in interest over the 5yrs if you hadn't have entered an IVA, you would probably still be better off.
In fairness, financial stress can stop people performing, it may be that the IVA allowed you to focus on your career hence your promotion. To the best of my knowledge there is nothing you can do. Sorry to be the carrier of unwanted news.
Peter Whyte MD
Chambers Moore Ltd
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