Clearing an IVA early?

under_par

Q.

I am one year into an IVA for approx 50k.

I am aware that an IVA lasts for 5/6 years.

IF I come into enough money to repay the whole debt in 12 months time....does the IVA end?

Does my poor credit rating last until the proposed end of my IVA or does the complete payment of the full total owed allow an early reprieve?

judojub

Hi under par
If you come into enough money to pay back 100p in the pound plus fees and possible interest then your IVA will conclude.
Your credit rating will still be shot for the 6 years from the date of acceptance of your IVA.

under_par

So there appears to be no benefit to paying everything off early..!

judojub

I guess not, if you're on about the credit rating side of things, but, then again, you would have nobody to answer to, no more I&E, your money would be your own!
Please bear in mind though that if you are due to come into some money then it will be captured by your IVA and you will have to hand it over anyway. If this means that you pay it all off then that can only be good, can't it?

SnoopyBignose

under_par wrote: »

So there appears to be no benefit to paying everything off early..!

Well I suppose the main benefit is that you will have cleared your debts early.

Unfortunately your credit rating will still suffer the effects of the IVA, which may seem unfair, but it highlights to future lenders that you were once insolvent. This will be someting they will want to know when deciding whether to lend in the future as (in their view) you will still be considered a risk for a while until you can demonstrate to them that you are now in control of your finances.

Like I say, it may not seem fair to you, but on the plus side you will be solvent and your creditors will have their money back.

under_par

It certainly will be good......debt free is the way to be.

I hoped completing full 100% repayment might have further incentive added to it.

BUT I can cope with no indebtedness.:beer:

judojub

under_par wrote: »

It certainly will be good......debt free is the way to be.

I hoped completing full 100% repayment might have further incentive added to it.

BUT I can cope with no indebtedness.:beer:

Would be nice wouldn't it! But just not going to happen:D
Like you say though, total debt freedom would be good enough!
Best of luck;)

FoggyBrain_2

I think most of us won't want credit again, so, unless you are after a mortgage or need to move in rented property (credit check!) in the next 6 years, there shouldn't be a problem with a duff credit record. Apart from anything else it gives you a fair period to learn to live without credit !!