Full and Final IVA

Rodders1981

Hi guys, i am a newbie to the forum. I have been with a Debt management company (Ashley Park) for 4 years. They contacted me two months back to tell me that they can no longer look after my case, so i will need to find another company. The recomended a company, Called Payplan. Since I have started speaking with Payplan, they have recommended an IVA and told me that this is my best option. In the meantime my father in law have offered a gift of £12,000. I mentioned this to them and they then told me that a full and final IVA can be offered. Have anyone else ever done this or is anyone able to advise me on it please?

DorisTrousers

A full and final IVA may be possible (I prefer to call it a single premium IVA, but maybe I am being picky) and as a general rule is actually a better bet than a normal monthly contribution IVA, as much as anything because a lot can change in the typical 5 year period of an IVA.

That said, I would counsel extreme caution. There are a number of factors that could affect any such proposal, homeowner, equity, other assets etc, and your post doesn't make clear whether these factors will come in to play.

The main reason I urge caution is that before they knew about the possible lump sum, it seems you were being directed to a normal IVA. This, therefore, assumes that you are in a position to make monthly payments, much as you were doing on your DMP. Let me assure you that if you can afford monthly payments, and assuming that the lump sum does not clear the debt in full, that creditors will want the lump sum AND the monthly payments. Why would they agree to less than they are owed if you can afford monthly payments on top? Doesn't make sense. Single premium IVA's will only ever be accepted, therefore, if there is no prospect of monthly payments as well.

Whilst every debt advisor will accept that there are areas of "discretion" in any financial statement which could make a difference, I would be very wary of anyone claiming in one breath that you can afford payments, whilst claiming in the next that you can't. More than happy to have a look at your case if you want to PM me, but if not then I would certainly suggest that you do maybe need to speak to some others before making your next step.