Clearing my iva early

Doofydad

I am 2 years into an iva agreement paying a substantial amount each month, I recently had a statement and less than25% of my payments have been used to clear the debt!!!! My parents have recently took retirement and have fantastic lump sum settlements and want to loan me the money to clear my iva. Do I have to do it through the company or can I approach my creditors and clear it privately.? I thought I might get a lower price privately as my iva company will want their pound of flesh. Any help would be greatly appreciated thankyou :-)

Anondebtadvisor

If you are in an IVA you should approach the IVA company for a settlement.

Work out how much you have left to pay into the IVA minus 3 years supervisor fees and use this a offer guide

Doofydad

I have paid 4.5k in 2.3 years but have only cleared 1.25k off of my debt!! So I would actually owe as much in a settlement as I did 2.3 years ago so I have been no better off in my iva surely this is wrong. It seems as though the management company are hoping for a huge remortgage amount but unfortunately house prices have dropped and there is less than 20k in equity and only half of that can be mortgaged due to my wife's interest so my creditors are in for a huge bum deal dealing with my iva company !!!!!

Anondebtadvisor

It sounds like you are paying about £170 per month?

as an example £170 x 33 months remaining of the IVA = £5610

If you are unable to remortgage which is likely to be the case they can extend your IVA by 12months but if you offer them a settlement and the creditors accept the IVA will complete early and your IVA completed.

How much can you raise from your parents? i think about £5000 would be enough to make the offer attractive to your creditors

Doofydad

That sounds excellent thank you just one more point sorry. If I complete early who is responsible for removing the charge against my property, is it me or the iva company. Thankyou for your assistance very helpful :-)

Anondebtadvisor

The IVA company will submit an RX4 form to remove the restriction on the property.

It will help your case for a F&F if your circumstances have changed or you can no longer afford to pay your monthly contribution at the level you have been.

Settling the IVA early is in everyone interest, you obviously end your IVA, the creditor gets their money quicker and the IVA company have 1 less case and as you say their fees!

Who have you been dealing with? they dont sound very approachable or helpful?

Doofydad

It was brains and Ernst they moved me to grant Thornton to say I was unimpressed would be an understatement but hey when u loose your job they like to profit from your Mis fortune but its all Gravy now as I am working and earning a very good living :-)

Anondebtadvisor

Interesting, put an offer to them and see what they say :-)

All the best

UpToMyNeckInIt

I agree with Anondebtadvisor.

I have read similar advice on another IVA forum, and the general consensus is: offer a F&F equivalent to the minimum amount your creditors agreed to accept, (ie: your IVA monthly payment multiplied by the original 5-Year term - that would include all your IP fees), less what you have already paid in.

Your creditors should see this as a win, as they are getting all their agreed minimum dividend at once, rather than waiting another few years.

You must make this approach via your IP as I understand it.

Keep us all posted and let us know how it all goes. Good luck.