Ending an IVA early

steve_Ferro

Hi, I am 43 months into my IVA  (17 months left, 17 payments is about £6k). A close family member, who can easily afford it, has offered to pay it off for me, to end the IVA early.

Is this possible? Is it straightforward? What do I do, to do this? I am with StepChange.

WillGoodfellow

You can contact Stepchange and ask for a settlement figure to find out how much you would have to pay to settle the IVA, you may owe more than you think if Stepchange charges fees. Your creditors may be willing to accept full and final (reduced) offers if you have a lump sum to pay. You can also discuss that with Stepchange.

sourcrates

Its a little more complex than simply paying the remaining months payments, for instance, if you own a house, in year 5 you are supposed to re-mortgage to release equity for your creditors, if you don`t own property, then another 12 months payments are the norm, then there are the fee`s associated with running the arrangement, they can run into thousands of pounds, then there are bank charges, VAT, interest, disbursment fee`s, and whatever other fee is listed in your IVA shedule that you are responcible for.

The 6k could easily turn into 12k or more, when all that is taken into account, you need to discuss the matter with your IP, not stepchange.