can I make offer to end iva early

[carl.c]

Since starting my iva i have had letters from my creditors saying they have sold my debts to another company,ive had my iva for 2 years and was wondering if i could make my new credititors a offer to end the iva early and how do i do it?

[PoorbutHappy]

I think the usual route is talk to your IP.

Its quite common for companies to sell debts on. One of my "new" creditors states I owe less money than when I took out the IVA, so thats another £500 saved! Not sure how that happened but not going to complain. So its worth checking what they say you owe them against what you started out with.

If you own a home can be more complicated as you may already have equity release clauses etc.

Question is how much and how you gonna get hold of the money.

If you just won a load of money the that would probably fall under a windfall clause and disappear into the IVA anyway (up to the maximum, amount owed + IP fees + 8% interest - summit like that). Similarly just dont let a realtive/friend/whoever give ya the money.

Some sort of loan, conditional on settling the IVA I think is not too uncommon. You tend to save later years fees, but costs to set up the meeting anyways.

Your IP will be in best position to give you an idea of how much would be reasonable. Expect maybe an amount equal to your payments less maybe £1K - £2K

[MelanieGiles]

Hi carl - yes the route is via your IP, but where would the money come from to fund a full and final offer? if from equity release, was your property included in the original IVA.

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

[a_c]

If I had an equity release clause in my IVA (I'm a homeowner) and I received redundancy pay would I be able to offer the redundancy money in place of a secured loan? In fact would I be able to do this and make a full and final offer if I received enough redundancy to cover this?

[MelanieGiles]

Hi ac

Redundancy money is generally paid for you to compensate from loss of office, and surely will be needed to supplement your income until you find replacement work. I you do find a new job whilst you have redundancy money remaining, that balance would be classed as a windfall and handed over to your Trustee in any case - on top of the equity you are required to release.

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