can I make IVA paid up if I have sufficient funds

[Sasol1]

One of the conditions of my IVA was that I had to sell my house. I am now in a position to sell (at last a buyer!) I will have to put any profit into the IVA no problem with that but will this bring the period of payments down from 5 years? Also can I make the IVA paid up if I have sufficient funds. I know what my creditors have accepted up front but is this a moving target?

[Jinx]

I'm pretty sure that if you have sufficient money from the sale of your property to clear your IVA then yes you can make a full & final payment offer to your IP. This does not discharge you from the IVA as in you will still be unable to obtain credit for the period of the IVA but you will not have to make monthly istallments. Best way as always is to check the terms & conditions of your IVA with your IP.

[kallis3]

Hi Sasol1 and welcome to the forum.

You will have to check with your IP as to what would constitute an acceptable amount for a full and final offer.

If it is not enough, then I imagine that you will have to pay any profit across and still continue to pay your IVA. It just means that your creditors will get a better return.

One of the experts will probably be able to help further.

[plasticdaft]

Ant profit from the sale of the house will go into your iva,unless this clears the debts in full;,plus fees you would be expected to carry on with your payments. Is the house sale written into the iva,normally its just an equity release and your house would be safe??

[Adam Davies]

Hi
If the house sale was part of your IVA along with regular monthly payments for five years then you will just continue with these payments until month 60
Regards

[MelanieGiles]

What do the terms of your IVA actually say on this point?

[Sasol1]

Hi, the house sale is part of the IVA I'm paying £512 per month and this will now go up to £1,157 per month! I've been looking at other postings (I'm with debt free direct)and now I believe I won't be able to complete a full & final pay out as they will want the total debt £97k plus their fees. The way things are working out I seem to have just stopped paying interest on my debts & will end up paying £66k plus any profit from the house (£10k)on debt of £97k.

I suppose I can't really complain as I'm the one who got me into trouble in the first place!

[Sasol1]

Maybe I should take a long walk off a short pier or go bankrupt!

[Adam Davies]

Hi
In bankruptcy your equity would go to the OR,however you would pay less in an IPA each month over three years compared to the five year IVA payments.
Regards

[Sasol1]

Thanks Andy. I'm pretty new to this,3rd month and along way to go! and no one to speak to unless I'm prepared to pay up to £300 per hour. What do OR and IPA stand for?

Regards

[MelanieGiles]

OR - Official Receiver (the person who usually acts as Trustee in bankruptcy)

IPA - Income Payments Agreement (a voluntary agreement between you and your Trustee to make ongoing affordable payments over a three year period.

[Viki.W]

Sasol, Official receiver, person who will deal with your bankruptcy and income payment agreement, the monthly amount you'll pay back over three years if you have disposable income. I would recommend you have a look at out sister site, have a little read of the posts. But please keep posting here, we're all here for you.
X
http://www.bankruptcyhelp.org.uk/

[Sasol1]

Thank you all for the support. I just it that there is no incentive to bust my bum to pay off this debt, and that my only asset that could give my creditors a real chance of getting as much money back as possible is to be given away. Last year before the piranhas ate themselves (but still attract the huge bonuses) I had £70,000 equity in my house - now zilch - 3-4 years it will be back at £70,000 who is going to win? The IVA runs for 5 years I pay £512 per month the house appreciates I sell the house and give all the money back to the creditors We ALL WIN. I give the house away and pay over £1,000 per month creditors win a little I loose. It's fine when everyone is tempting you with credit- but my own fault!!!

Sorry to be whingeing I'm normally the guy that sees the "glass half full" but all I see now is a broken glass

[Viki.W]

Sasol1, I know things are rubbish but you are trying to do something about it, you should be proud. Now, no more talk about that pier! X