IVA Early full and final offer

Drum_Master

Hi,

I am looking at taking an IVA with debts of 30k.

From using tools with Websites and working out my future outgoings it looks as though I would roughly pay back 15k over the 5 year term.

One of my friends has offered to settle my debt as a final offer if this goes ahead which I think would be offered at roughly 12k (minus the iva fees over the term of the 5 years). This wold be available as soon as the IVA has been taken.

Has anybody had any experience of an early settlement this way or does anybody know if this is feasable?

As this will give me a platform to start fresh and build myself back up to gaining a mortgage in 5-6 years.

thank you in advance for any advice

Kind regards

Find_The_Real

You could certainly go in as a lump sum (F&F) offer from a 3rd party for the IVA from the outset, as I did that but my offer was what I would have paid over the 5 years and I didn't have a property in which any equity could be used. It would probably be best to speak to 2-3 IVA companies to get an idea of what would be the best way to settle the debts.

If you google "IVA" it brings up a number of companies including one that has a forum attached which will give you a good idea of the companies to speak to.

If you are unsure then let me know and I can point you in the right direction of where you need to be looking.

Drum_Master

Hi Real,

Thank you for your reply,

I am new to these sorts of things so would like some guidance if possible. I am in the same situation without mortgage and have currently contacted some recomemeded government backed charity companies. As I am aware I can make an offer minus the IVA company fees (£50 a month roughly so £3000 over the term). Did you have a similar situation? and how did you go about the offer? Did you get the IVA than make the offer or make the offer prior the IVA?

Also did you seek contacting companies directly with settlment offers without having to take the IVA? I have been advised to try this but do not know where to start.

As the IVA would be paid off but on credit for 6 years how did this effect yourself when trying for a mortgage in coming years if you have had that opportunity? I would like to as joint with my partner in a few years once im back in a good situation but I know that may become difficult.

Thank you in advance for any further advice.

Find_The_Real

I went in with an offer from the start but my situation was slightly different in that I had a mortgage shortfall to deal with and I wanted to make sure any offer was legally binding.

You could approach the lenders direct but it will still damage your credit rating as most will mark as partially settled if you offer a F&F settlement on a pro-rata basis.

National debtline has a lot of information on it http://www.nationaldebtline.co.uk/

This section deals with settlement offers: http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers

should you consider approaching them yourself.

The best advice I can offer is take your time to research all the options, make used of free advice offered, and then carefully consider what is best for you and your partner in the long term. It may be even be an idea to consider using the lump sum to make a full settlement on the highest interest rate debts leaving a more manageable amount without affecting your credit file and then throwing as much at the rest of the debt that you can.

If you are having problems making the payments at the moment then you could consider going into a free DMP with one of the charities to give you some breathing space to decide the best option as that is the route I went down first before deciding what was best for me and entering into and IVA.

This thread is good for info about that: https://forums.moneysavingexpert.com/discussion/4437925