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IVA lump sum - what's the deal?

Hello - please help!

I heard that you can offer a lump sum to creditors, through the IP, to settle an IVA.

I am one year through a 20k IVA (repaying 9k) and have the option of borrowing a lump sum from a family member.

I thought rather than waiting another 5 years to complete the IVA, I could offer them the 9k up front and have it off my file within 12 months.

Would this work or am I mistaken in thinking you can offer a lump sum during an IVA?



  • leeds4ever6
    leeds4ever6 Posts: 10 Forumite
    hi there. just read ur message. never offer 9k only offer half that say 4.5k.
    plus u wont wipe out ya credit file until the full 6 years are up from the day u started ya iva.

    so the option is yours but dont offer 9k ya just wasting money if you do.
  • happychappy74

    Like you I had no idea what was a reasonable offer so the offer put forward was for approx 42% of the remaining payment amount. It is an offer made by the third party and the company will assess whether it is reasonable enough to put forwards. A meeting will be arranged to cater for a 28 day period upon which all the creditors will vote. That is the only time you will know anything as your company really wont know where you stand as it is not up to them, so dont be put off.

    I had an opportunity to make an offer, which I was unsure about, but it turned out well. If it was rejected then there is nothing stopping you trying again in a few months.

    I hope it all works out for you.
  • twistle
    twistle Posts: 5 Forumite
    Thanks folks - will give it a go!
  • doelani
    doelani Posts: 2,576 Forumite
    First Anniversary Combo Breaker
    if you decide to offer lump sum to do a full and final as already said still stays on your credit file for 6 years from start of IVA but may be worth talking to your IP about it anyway , they will want proof though of where you are getting the money from , like a letter from your friend, it has to go to the creditors to agree to it but IP should be able to give you and idea if amount you are offering is enough
    TOTAL 44 weeks lose. 6st 9.5lb :T
  • a2062cad
    a2062cad Posts: 29 Forumite
    First Anniversary Combo Breaker
    The previous posts seem to sum up the benefits of a lump sum. I would echo the point about proving you have cash to burn as your creditors will want to releave you of this rather than waiting the full term.

    I appreciate the 6 yrs credit file challenge BUT not having to worry is worth every penny.

    I did a F & F for 118k unsecured @ 50k and my journey now is less cluttered with worry more of hope.

    Good luck
  • struggler
    struggler Posts: 68 Forumite
    I have seen several of your posts and am thinking of a F&F for myself. At long last I have a telephone appt with a CCCS adviser, and so thank you for some inspiration. My amounts are almost identical to yours. Anything else you think of sharing is much appreciated
  • twistle
    twistle Posts: 5 Forumite
    Just offered £4k as a full and final settlement. Can go a little higher but will wait and see what they say. Will post back here if it's of use to anyone.
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