Paying off an IVA after lowered payments

Southpaw18

Hi All,

I have been on an IVA for around 2 years, and was on DMP for 1 year.

It has affected me in many ways and currently is really restricting my life in that i cant save or put any money away for the future.

I lowered my payments about 1 year ago from around £215 a month to £140 due to a job loss and taking a much lower paid job.
I was recently told on my current pay amount, by the end of my IVA i would have paid another £7k (this is because they added 1 year for my lower payments.

My question is, if i could get hold of a sum of money to pay this off, would i be within my rights to offer near this £7k figure, as my job hasnt changed and there is no job opportunity on the horizon, or if i was to make an offer would they flat out ask for the original figure and not budge on it?

I know many people will say why not stick with it, but i cannot live this restricted, i felt hugely pressured into my IVA and never failed any payments to any creditors, EVER! I was young, naive and worried and did what i was told, so i want to clear it and start a fresh but would like to know my options for payment.

thanks alot.

Maida

If somebody is willing to pay it off for you, i.e. a family member or friend, then you can offer the full amount or less. I believe your IP would approach the creditors and they would have to vote on whether or not to accept your offer if it's less than £7. You'll need a letter from your family member or whoever it is explaining that they have the funds to clear this for you.

Southpaw18

Hi Maida,

Thanks for the reply.

When you say full amount, would it be the £7k, or would they request the original full amount based on my original payments? Truth is i dont see my payments going up anytime soon, so if someone could give me the money up front then id love to pay it off, id probably be willing to offer £8k if it got it all done.

Have you done this yourself?

Southpaw18

can anyone shed some light on this? im desparate to pay off the IVA early and want to know the best way of approaching it? has anyone here paid one early? can you tell me what you did?

judojub

Hi Southpaw.
I don't have any experience of F&F but hopefully one who has will be along soon to help.
As far as I understand it, you will have to offer an amount as close to your original dividend as possible. So, your original dividend minus what you have paid so far and that will give you an idea of what you would need to offer.
I think your best bet would be to speak to your IP, hopefully they can advise you on what would be a reasonable sum to offer.

judojub

Also Southpaw.
If you do make a f&f then it must be made quite clear that the funds will only be made available for that purpose. Should the f&f be rejected then the funds will be withdrawn.

Southpaw18

Hi Judojub,

thanks for the reply.

I will make it clear the funds are only for this. i dont actually have the funds anyway, but id hope to get them somehow, i just want to see my options. i think your right, i may contact the IVA company and try to see what a good figure would be for both.

FayMckenna

Sorry, can't help with an answer but have the same question regarding offering a lump sum to clear the IVA for my dad.