Full and Final Settlement - IVA

in IVA & DRO
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ExperHRExperHR Forumite
8 Posts
Fifth Anniversary First Post
Forumite
Hi,

I took out an IVA in August 2020, £32k debt, reduced to £12,000.00 over 60 months = £200.00 per month.

I really want out, and my partner has offered to gift the money to get this settled. 

I want to offer a full and final settlement after 18 months, which will leave £8,400.00 remaining on the IVA. 

Note, I have no assets, no mortgage, and live in a rental property. My largest debt with Tesco Bank (£17,000.00) has been handed over to the PRA Group who more than likely purchased the debt from Tesco for pennies.

What sort of offer would likely clear this debt? I was thinking about offering £3000.00. 

Please let me know your thoughts, or past experiences. 

Many thanks,


Replies

  • carlos1973carlos1973 Forumite
    250 Posts
    Part of the Furniture 100 Posts Combo Breaker
    Having been discharged from an IVA that had numerous hiccups and problems I would advise to be very careful.
    Your creditors are unlikely to accept a low settlement figure and if you propose to take this gift and pay them they could accept it and demand you continue the full course of the IVA.  Check your T&C's for details about windfall payments.
    At the end of the day the creditors want as much of the debt paid as possible and your IVA Practioner has a responsibility to secure this for them.
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