Early Settlement

misstaz7

I currently pay £220 per month and I have 11 months remaining of my IVA and I wish to settle early. This works out at £2420. My Mom said that she can pay it off for me if I find out what will be accepted. I don't know what to offer. I was thinking about a £1000 less than this amount. I am aware that this monty would need to be offered in full and final settlement and if rejected this offer will be withdrawn. Any advice? Thanks.

tisdave

Hey!
You can offer what you feel appropriate - the worst they can do is decline it!
Offering £1000 less one year out may be slightly too low, as they'll take in to account that within 12 months, they'll receive double that. I'd probably aim for 75% of the amount - but nothing's stopping you from trying!

Best of luck

National_Debtline

Hi

As an IVA is a legally binding agreement you’ll need to make any early settlement offer through your insolvency practitioner. There would then need to be another creditor vote and 75% of creditors by value of the debts will need to accept the revised proposal for it to go through. Your insolvency practitioner is probably the best person to ask how much to offer as they’re likely to have a better idea of what creditors might find acceptable at this stage in the proceedings.

If you just make a full and final settlement offer in the normal informal way you’ll still have the IVA running too.

James
@natdebtline

biscuit1_2

Is that 11 months of the 5 years, as you then normally have to pay an extra year making it 6 if you cant remortgage any property.