Early settlement of IVA

aero1

Hello all.
I'm hoping someone can help with this and give me some advice please?

An IVA (not mine) is up and running, which includes an unsecured NRAM loan - so part of a Together mortgage. So NRAM are getting a portion of what is due.

Does any one know, if I wanted to clear the NRAM loan, would I go through NRAm, or the IVA people?

Say for example the actual loan is £40k. If I go direct to NRAM I'm guessing NRAM would insist on the whole amount not just the sum they have expected to get through the IVA over 6 years. Which of course is fair enough.

Or would I approach the IVA people and they deal with it all? The important thing is to get the loan cleared..

Thank you

DorisTrousers

You cannot do that I'm afraid.

NRAM are bound by the IVA, so if there were any monies available they must be apportioned between all creditors.

If there is money available though, you could always offer a full and final settlement of the IVA, which, if accepted, means that the NRAM debt no longer exists anyway, and all the others have got their money early as well.

aero1

OK thanks DorisTrousers that makes sense.


So the next step would be to contact the IVA people and ask them for the figure? Thanks

DorisTrousers

You may not get much joy from the I.P. if it isn't your IVA, but whoever has the IVA can call. It isn't so much a case of asking for a figure, more a case of giving them a figure and asking their opinion on the chances of acceptance.

Whatever figure that is, I would take some off as your opening gambit, no sense in paying more than is necessary. That also gives you some extra in reserve to play with if you need it. The debtor also has the right to insist that the I.P. puts the offer forward, even if it against the I.P. advice, for example if they feel the offer isn't high enough.

aero1

Thanks again that's great advice.

I'm hoping they will talk to me directly and I will knock off about £8k initially then, of what I'm prepared to pay to get it clear. Thanks

DorisTrousers

Educated guess, but if you had enough to pay off the Nram, then in 99% of cases with a together loan the Nram is majority creditor, so taking that sort of figure off your proposed offer is pretty sound thinking.

aero1

Excellent! I shall get straight on it on Monday! Thank you again you've been a great help x