Settling IVAs early.

james32_uk

I've seen a few people who have talked about them ending their IVAs early. Can I ask anyone who was able to do this how they achieved it?

Thanks for any help

james32_uk

Anybody? I appreciate these cases must be quite rare

Toto

You need to write a letter to your IP and explain you would like to settle early. You need to give them a figure which is around 70% of the IVA amount then explain where these funds are coming from.

If the proposal seems ok to the IP and he is satisfied you have not either stashed money away somewhere prior to the IVA nor are you borrowing more to clear the IVA, he will then write to your creditors offering a full and final.

He may ask at this time for a written statement from the person who is clearing the IVA for you (if the funds are coming from family or friends) or proof that it is coming from an inheritance or sale of property etc.

It then goes to meeting again where the creditors vote for or against the full and final. If the proposal is sensible enough most creditors would rather get the money in a lump sum, than wait for 5 years to get it in drips. If they agree then you pay your funds and that is pretty much that. You then get a letter saying the IVA has been satisfied.

Hope that helps x

james32_uk

Brilliant - thanks for that!