IVA: Full and Final Question (Again?)

FortyTwo

Hi,

Just a quick question as my wife and I can't decide on the right answer!

I believe that if in a few years I offered a full and final settlement on my debts it would need to be on the total debt as agreed within the IVA. (Eg: Based around my total repayments left to go less fees.) My wife believes that I should base any offer around the total amount of the original debts as she thinks they may increase the total amount I have to pay off before the end of the period.

Which one of us is right?

Thanks

42

Charco_2

There's no short answer, basically you're both right! ↲You'd be expected to offer as much as you can afford but you creditors are going to want a REASON too! They'll want to know where the money is coming from and why are you offering now. It's worth reading the thread started by Timberflake some threads below this one.

FortyTwo

Thanks again Charco - I did a search and read most of the threads (I think) but still wasn't sure of the answer.

I'm a bit unsure of how they'd take my reason because essentially it's taking on extra work to cover the debt. I'm wondering if they then wouldn't complete because they'd be expecting the extra money to still come in. Obviously they couldn't force me to work - or at least keep on the lowest paid and/or less stable job. (...) But would I have the incentive to still work extra if I wasn't gaining anything from it!

Completing the debt would however allow us to think seriously about a family as my wife can not wait to long because of an ongoing medical condition. Reaching the IVA could be doable. However I'm not sure about the original amount as it is only a small concern.

42

Charco_2

FortyTwo wrote: »

Thanks again Charco - I did a search and read most of the threads (I think) but still wasn't sure of the answer.

I'm a bit unsure of how they'd take my reason because essentially it's taking on extra work to cover the debt. I'm wondering if they then wouldn't complete because they'd be expecting the extra money to still come in. Obviously they couldn't force me to work - or at least keep on the lowest paid and/or less stable job. (...) But would I have the incentive to still work extra if I wasn't gaining anything from it!

Completing the debt would however allow us to think seriously about a family as my wife can not wait to long because of an ongoing medical condition. Reaching the IVA could be doable. However I'm not sure about the original amount as it is only a small concern.

42

Something like starting a family and the changing circumstances due to that would be a decent enough reason but where is the money coming from?
Once they accept the Lump sum agreement then that would be the end of it, you pay the lump sum and they cannot expect continued ongoing payments.