paying off an IVA early

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danp100
danp100 Posts: 62 Forumite
Hi,
i am going to be proposing an IVA soon, so i know it is way to early to really be thinking about this, but i was just wondering how it could possibly be paid off early. If my IVA gets accepted i understand that further down the line an offer can be made to the creditors as a lump sum? does anyone know roughly how much this would be? would it have to be an amount equal to most of the debt?
if a property happened to be within the IVA with equity, can a lump sum offer still be made?
hope that makes some sense,
thanks
dan

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  • judojub
    judojub Posts: 276 Forumite
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    danp100 wrote: »
    Hi,
    i am going to be proposing an IVA soon, so i know it is way to early to really be thinking about this, but i was just wondering how it could possibly be paid off early. If my IVA gets accepted i understand that further down the line an offer can be made to the creditors as a lump sum? does anyone know roughly how much this would be? would it have to be an amount equal to most of the debt?
    if a property happened to be within the IVA with equity, can a lump sum offer still be made?
    hope that makes some sense,
    thanks
    dan

    Hi danp100.
    I will try and answer this although I am not an expert and I am sure somebody with a bit more knowledge will come along to help.
    You will always owe the full amount of your debt plus fees until the IVA concludes. It is possible to end an IVA by way of a Full and Final offer which normally has to come from third party funds and I think that the offer has to be as close to the original dividend as possible.
    Any equity in your property would be captured by the IVA anyway and you will be expected to try and remortgage in year 5 to try and release this equity to pay towards your debts.
    If you have enough equity in your house to pay off all your debts in full then you would not be considered insolvent and this might be something you want to look at before entering into an IVA.
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