Lump Sum IVA

Drum_Master

HI,

Does anybody have any experience or understand the process of a lump sum IVA?

I currently have debt of roughly 30k and am in a position where I could lose my job soon and the debt has got too high fo rme to control.

What is a rough figure I could offer? 30/40p in the pound? I have been offered help from a 3rd party but am tryign to find out all the facts and info before I speak to stepchange and CAB on saturday.

also would this still leave an IVA on file for the full6 years? or is this a different process?

How long would this process take to put in place?

Thank yuo in advance for yuor help.

Find_The_Real

A lump sum IVA is where a sum (normally from a 3rd party) is paid into the IVA from the start with no additional monthly payments. The whole process can take 6-8 weeks until the creditors meeting when they decide whether to accept or not. It is still an IVA and will be on your credit file for the 6 years and will be difficult to obtain credit this time. It is difficult to put a figure on how much is required but an offer of 40p in the pound these days would be considered quite good, but it does depend on how much surplus you have each month for the debts. The possibility of a job loss may also help with the process.

However there are a few considerations with this way of doing things. You are still liable for the full debt + IP fees + interest until you receive the completion certificate which can take up to 12 months. If you are made redundant and receive money this is considered a windfall and must be made available for the IVA (although your IP may allow you to keep some for living expenses until you get a new job) and if you haven't claimed any PPI before you enter an IVA this will be investigated and any monies claimed also paid into the IVA.

As I said before speak to a few IVA firms as well to discuss this to get a better idea of the best way to deal with your debts as most offer free advice with no obligation to sign with them.

UpToMyNeckInIt

Azulay111,

I don't know what you are making the 'on file' reference to: With a F&F IVA, your credit file will be damaged for the full 6 years, BUT as soon as you are issued with your Certificate of Completion, you are removed from the Insolvency register straight away.

Drum_Master

Thank you UpToMyNeckInIt. I have done further research and have now spoken to step change and some over companies for advice but nobody had made aware of the this.