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IVA repayment
katb01
Posts: 26 Forumite
We are lucky enough to of received a financial gift from a family member to pay off the outstanding amount in the iva. We have 26 month left at £211 which amounts to £5486. We are in a position to repay this but the IVA company claim they need over £8k. We have challenged this and are getting very little repone from them.
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Comments
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I suggest you read the terms and conditions of the IVA and act in your best interests reference the terms and conditions.katb01 said:We are lucky enough to of received a financial gift from a family member to pay off the outstanding amount in the iva. We have 26 month left at £211 which amounts to £5486. We are in a position to repay this but the IVA company claim they need over £8k. We have challenged this and are getting very little repone from them.
My guess is they won't allow say a 5 year IVA and after just 3 months pay off all the monthly payments and fast forwards any clock.
Guessing if it's paid off earlier some potentially unpopular terms and conditions may be applied otherwise people would set up an IVA and then settle nice and early if it possibly suited them.
If you happy leaving the IVA run, just plonk gift money somewhere getting interest and pay off the remaining payments when due.
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Looks like it's best to let it complete then.
If the IP gets wind of the 'gift' it would be considered a windfall and you would be required to use it to pay the creditors in full plus the IP fees plus interest
Best to get advice before letting the money hit your account0 -
The common mis-conception people make when attempting this, is assuming they only have to cover outstanding monthly payments when settling an IVA.
To settle early you will need to pay the full value of your debts, plus IP fee`s, which is why they want 8k off you.
I am with fatbelly on this one, don`t let the IP know about this cash, otherwise you will have to pay the lot over to them as you will fall foul of the windfall clause, keep that money away from your own bank account, or you will lose it.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-letter0
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