Lump sum IVA?

CallyJen Forumite Posts: 7 Forumite
Hi, I’m currently debating debt solutions for £32k of unsecured debt. My partner can give me £10k, but would that be enough to offer as a lump sum IVA or would we need to raise more? Haven’t asked any firms, wondering if any lovely people on this thread have any experience or knowledge of this. Thanks


  • mwarby
    mwarby Forumite Posts: 2,044
    Part of the Furniture 1,000 Posts Name Dropper
    I did a lump sum 6 years ago for similar amounts.The key is demonstrating that the lump sum is as good as the returns they'd get over 5/6 years of monthly repayments(depending on situation with property). The actual amounts aren't mega important it's about your proposal being the best they feel you can do, and being better than bankruptcy
  • Bipbopbeep
    Bipbopbeep Forumite Posts: 2 Newbie
    There are fees involved in an IVA (around £3-4K) so it’s unlikely a lump sum would be accepted at 10k.

    Especially if your I&E will demonstrate you will have a decent level of disposable after your debts are included in the Iva.

    Could you use some of the 10k to negotiate some settlements on higher interest credit agreements and reduce your debt to a more manageable level?
  • PrettyKittyKat
    PrettyKittyKat Forumite Posts: 1,270 Forumite
    Do you have a disposable income if you do an income and expenditure?
    Do you own a property and if yes, is there any equity?

    To have a lump sum IVA accepted you would need to be able to demonstrate that the creditors would get more money accepting this than other methods (eg 60 months iva, bankruptcy) so the above two points are important to know before advising whether it would be a reasonable proposal.
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