Clearing an IVA

macman

Somerset_mum72 wrote: »

Gutted! As I assumed the IVA prevented lots of interest etc
Yep the £40k was my tired brain last night 😂

It does, but the fees still have to be paid. This would have been explained to you before you entered the IVA.

Jreilly77780

My partner started his IVA 3 years ago. The initial debt was £6011 and he was paying £91 a month. Since then he has had a few wage increases and is now paying around £150 a month. He is about to leave his current job to retrain in a different trade meaning he is going to be taking a huge drop in wages for a couple of years. I am in a position to gift him the money to pay off the IVA early, however, we are confused about how much to offer. He has contacted the IVA company who have advised him to offer an amount of over £3000 which would mean he would have paid way over the initial agreed sum. My question is, if we were to offer the amount outstanding based on the original agreement (which is closer to £2000), how likely would they be to accept this?
I have scoured threads and advice columns but can't find any advice about this situation. Any help would be appreciated.

sourcrates

Jreilly77780 wrote: »

My partner started his IVA 3 years ago. The initial debt was £6011 and he was paying £91 a month. Since then he has had a few wage increases and is now paying around £150 a month. He is about to leave his current job to retrain in a different trade meaning he is going to be taking a huge drop in wages for a couple of years. I am in a position to gift him the money to pay off the IVA early, however, we are confused about how much to offer. He has contacted the IVA company who have advised him to offer an amount of over £3000 which would mean he would have paid way over the initial agreed sum. My question is, if we were to offer the amount outstanding based on the original agreement (which is closer to £2000), how likely would they be to accept this?
I have scoured threads and advice columns but can't find any advice about this situation. Any help would be appreciated.

Hi,


For 6k an IVA was the wrong choice, they sell you these things mostly on the basis of there advertising, something like you can "write off 90% of your debt", sometimes you can, most of the time you can`t.


IVA`s were designed for people who own property, and have massive debts, 50-60k and upwards, who cannot go bankrupt, in that scenario, after 6 years, they maybe pay back half, and the rest is written off.


In your partners case, with the total debt been only 6k, the creditors will want to realize all the interest they would of received from the original agreements as well, hence why he will pay more than what the debt actually was.


Start at 2k, they will either say no, or may negotiate, in either case you can always increase it.

Jreilly77780

Yes I agree, he should never have agreed to the IVA.

Thank you, we will try that to begin with then we can always increaser the offer if it is rejected.