Iva settlement help

Sugga · 8 November 2019 at 1:43PM

Hi I'm looking for some advice if anyone can help me. I entered an iva in march this years, iv been keeping up with payments except for one month I had a payment break to recover repairs on my car.i owed my creditors around 18000 when I entered the iva I'm paying the minimum amount £80 per month I have 72 months left to pay £80 which is a total of £5760. I have been talking to a close member of my family that has said they will make an offer to the iva company to end my iva completely. I haven't approached the iva company yet as I dont know how much to offer them. Does anyone think that if they offered £6000 I would have a chance to settle this early?

Any advice is much appreciated thankyou x

foxy-stoat · 8 November 2019 at 3:24PM

You could try it - you just need to make it clear where the money would be coming from and the offer is only there to settle your IVA.

PrettyKittyKat · 9 November 2019 at 11:56AM

Do you have any property included? i.e. is there equity to consider also?

Otherwise I think £6,000 is a reasonable offer and I do think creditors would likely accept it on the basis that your payment is very low which usually means a very restrictive I&E. This means that a small change in circumstances make the IVA completely unaffordable. You need to ask your IVA company on their process for a f&f lump sum variation. Explain the family member is offering the funds as a gift ONLY to settle the IVA as they wish to reduce the stress that the IVA places upon you and allow you (or whatever the reason is!). Also, if you are benefits only they could mention that if your benefits were reduced or your expenses increased this would deem the IVA unaffordable, which worries you (if it does!).

Your family member will likely need to confirm this in writing and provide evidence of the funds (e.g. a bank statement) for anti-money laundering checks. Check that your family member would be happy to do this. Variations can take 2-3 months as the IP needs to draft the variation, you then need to receive a draft and sign to authorise it, then it is put the your creditors and a creditors meeting is set for 30 days later. You will need to maintain your payments in the meantime and these will not be taken off the money your family member is offering.

I am guessing that your circs have not changed however including an up to date I&E is usually preferable.

Sugga · 10 November 2019 at 11:54AM

Thankyou very much for your reply prettykittykat. I do not own my own home and I dont have any assets that are worth much. I'm going to call the iva company today and ask them for information on F&F I'm really glad I read your reply before calling them thankyou soo much &#55357;&#56898;

PrettyKittyKat · 10 November 2019 at 3:10PM

You are welcome. Nothing is guaranteed, it is all down to the creditors, but if they reject it you just continue as normal.

Let us know what your IVA company says

Iva settlement help

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