IVA early settlement advise needed

ggboy1978

My IVA was agreed in april 2007 and i was due to make 60 payments of £350. I work in engineering and due to lack of work we were laid off without pay for a fair amount of last year which forced me to miss several payments. I am currenty paying £400 per month in order to pay off my arrears. My dad has recently retired and is now in a position to help me out. I currently have £10,200 left to pay and I am thinking of paying my IVA off early. On a different forum I asked this question and was told that I would need to offer the full amount in order to settle early. Is this correct?

ricardido

It totally depends on the company that provided you with the IVA, some may accept part payments and others want the whole lot!

As long as the debt company gets their cut, im sure they wont mind either way...

happychappy74

I started my IVA in April 2006 and was able to offer a Full and Final Offer in June 2009. This was accepted and a Certificate of Completion was issued in July 2009.

I did NOT offer 100%,

I trawled the site for guidance and in the end offered what was available. I was amazed that the amount that I offered still left a realised payment to the creditors of only about 14p in the £ (although the initial IVA offered a relatively low return to start with). The IVA company makes sure that its fees are met first, that is why they do what they do.

I had £9240 outstanding at that point and offered £4500.

Before contacting your IP you need to be aware of a few points...

They will put forward what they believe to be a reasonable offer UNDER THE CIRCUMSTANCES. If you approach them saying you have been gifted some money and want to clear the debt then they may well just require the amount towards your IVA. However, if there are other factors ie partner is having health issues that is affecting/about to affect household income which would likely result in a failed IVA then a final offer will suddenly look far more attractive as a return and therefore be more likely to be accepted. Such factors coupled with the instability of your profession during the recession will provide a reasonable motivation for may creditors to seek an offer rather than risk what is outstanding.

The offer is usually made through a third party under the provision that it is a once only offer for finalising the IVA i.e. if not agreed then the creditors cannot demand that offered amount. In my case a friend of the family was able to offer the money. When the offer was agreed that money was then transfered into my account and then forwarded to my IP. The friend of the family only had to provide a letter stating the money was availble as a full and final settlement offer.


There is an IP fee (that does not come out of your pocket, but the creditors amount) for the meeting for this, and it is surprisingly high. You are not limited (I wasnt) to making one reasonable offer. It then becomes a case of offering an reasonable amount that you believe is likely to be accepted, so dont make too low an offer. If its too close to call then the fees may play a part in having the matter agreed as obviously the crewditors want money in their pockets, not extra in the IP's. Mine was a close call, but JUST made it. Thats good enough for me.


Sit down. Look at the numbers, get it set out in your head and when you are ready give your IP a call.

Hope this has helped. Good luck.

P.S.
On another note I would have a look at your credit reports now while you are at it cos my creditors made mine an absolute mess, which I am still sorting out.

ggboy1978

Thanks For your advise.
My money will be coming from dad which I will pay back at some point! The money is not a windfall. Think I will try and offer about £6000 and will mention the fact that I work in engineering which has been hit hard by the recession. Hopefully they will take it rather than risk my IVA failing. Thanks again