IVA early settlement advice

raslade81

Hi all, i can see this has been asked many times over the years but i would appreciate your impatial advise and expertise.

For a bit of background...

I have an IVA after my family business closed down.  I am about 18 months in to it the agreement. The IVA is for around £70,000.  

Since all the really difficult times have started to pass (business closing, getting IVA, finding work etc) I have since been diagnosed with Cyclothemia which explains in part why i borrowed so recklessly and why my mental health is in such a bad way now.

Situation now...

I am paying back £207 a month.  I have what sounds like a standard IVA agreement with Wilson Field, as in i attempt to remortgage at the end of year 5 but this is unlikely to go through so 12 months extra payments.

My mental health is so bad, i am really struggling with the burden of it.  Also it is literally every spare penny, i am not able to buy food each week and am having to beg steal and borrow to get school uniforms sorted.

My mum is about to have some inheritance and has offered to gift me money to clear the debt.

What offer is likely to be accepted?  How long does the process take? I am so low i don't know if i can handle the uncertainty of it all.  Are they likely to accept an offer relatively early in to the agreement?

Please share your experiences and knowledge around this so i can make a decision.

Thank you.

sourcrates

Hi,

First you have to provide them with a reason why they should accept your offer now, instead of continuing with monthly payments, as you are only 18 months in, once fee`s are taken into account, there won`t be much in the creditors "pot" just yet.

At this point in time, unless you had say an incurable illness, it would be the full balance they would most likely settle for, again, why should they accept less ?.

Acceptance of a full and final offer requires a creditors meeting to approve it, or not, so it can take a few months to organise.

To be honest, and apologies for being specific, as things stand, unless you have the full 70k, or your not expected to live past the end date of your arrangement, then I would not bother, as it won`t be accepted. 

MrFrugalFever

If you’re paying £207 a month and have paid this for the last 18 months then I would suggest that you’ve only really broken the back of the IVA firms fees let alone any dividend to the creditors.

a full and final settlement can be offered at anytime from what I know, you will need to actively be able to prove source of funds and it is highly unlikely that anything less than what is owed will be accepted at this stage.

your Iva is designed to give you a reasonable amount of disposable income each month after you have paid priority bills (mortgage/utility/council tax etc) so if you are struggling with what is left then perhaps an adjustment to your I&E report is required? Or you just haven’t yet adjusted to the structure of the IVA as it’s still quite early on. You must find a way to cut your impulsive spends, prioritising things like food, travel to work and children. How you do this will most likely just be a case of trial and error but there are many threads on here to support in ways of saving money.