Iva early settle

Hi everyone need some advice .   We our in our iva 4 and half years . I am soon to ininherit  some money up to the value of 8,000.  We owe 3200 on r iva do u think the creditors would take an early settlement.  
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  • elsien
    elsien Posts: 32,636 Forumite
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    Does your IVA include a windfall clause - if it does then you are likely to have to pay the full amount. 
    All shall be well, and all shall be well, and all manner of things shall be well.

    Pedant alert - it's could have, not could of.
  • fatbelly
    fatbelly Posts: 20,431 Forumite
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    I assume you didn' t do an IVA for £3200

    The £8000 will go to pay creditors, IVA fees and interest. If that is more than required, the IVA will complete at that point and the surplus returned to you
  • sourcrates
    sourcrates Posts: 28,805 Ambassador
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    You won`t know how much you owe until all payments and all charges and fee`s have been deducted.

    An IVA does not work like a normal reducing loan, your payments go into a pot, from that pot, fees and charges are taken, and there will be occasional disbursements to your creditors.

    Any figure you may think you owe will not be correct.

    Fatbelly lists the course of events above.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • Matesy
    Matesy Posts: 39 Forumite
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    We spoke with are advisor and that is what he told us what we owed so I am just going on their advice .  
  • sourcrates
    sourcrates Posts: 28,805 Ambassador
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    Are you 100% certain this is an IVA (Individual voluntary arrangement) ?

    Not some kind of debt management plan ?

    Who is your advisor/IP ?

    What was your debt total prior to entering this arrangement ?
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • Matesy
    Matesy Posts: 39 Forumite
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    Yes it is an iva we r in 4 and half years .  
    We have probably a year and a half to go . 
    We pay £170 a month .  Our ip said we could maybe settle early 
  • fatbelly
    fatbelly Posts: 20,431 Forumite
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    IVAs normally last 5 years.

    Are you expecting to do a sixth year because you cannot release equity from a property?
  • Matesy
    Matesy Posts: 39 Forumite
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    Hi sorry only getting back we r currently in our 5th year but will probably have to carry on with a sixth . 
    I was notified that I was beneficiary and informed our I P he said that we could maybe make an early settlement to our creditors . 
    At the minute our iva debts would be 3200 left to pay if we did 6 years . 

    He said that we could offer our creditors an early settlement offer .  

  • Matesy
    Matesy Posts: 39 Forumite
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    We have phoned him twice and this is what he has told us in fairness they have brilliant throughout our iva this would be brilliant if we could . 
  • sourcrates
    sourcrates Posts: 28,805 Ambassador
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    edited 28 August 2023 at 11:12AM
    Are you basing that settlement figure on payments left to make ?

    If you are, that is not how it will go down, you need to be very careful here, never take vocal advice over what is written in your IVA terms and conditions.

    In any settlement offer, if they know you have inherited 8k, a creditors meeting would be called, you would be expected to pay the full amount of your original debt, or as near too it as possible as funds allow, plus all fee`s/charges/interest/VAT etc etc etc.

    The creditors may also vote to invoke the windfall clause as an alternative.
    You need to tread very carefully and be 100% certain of what your agreement says, and how you proceed with this.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
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