Can an IVA be ended early with lump sum payment

[cl0]

I'm currently in an IVA which started in May 2004. I have had a change in circumstances by my child maintenance payments from my ex husband being reduced by around £250 a month. However, a relative has said they would pay off my oustanding debt in a lump sum rather than see me in financial hardship. Can an IVA be ended early by making a lump sum payment and if so how does this work

[MelanieGiles]

Hi cl0 and welcome to the forum

Yes your IVA can be ended in such manner and you should ask your IP for a settlement figure based upon the original dividend agreed by creditors. They will need to call another meeting of creditors, to obtain the creditors agreement to your relative's offer, but these are usually a formality and rarely rejected.

Good luck and let us know how you get on.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk