Can i pay my IVA off early?

[cj2300]

Hi all,

Just wanted some advice about paying off my IVA early.
My original debt was £67000, I have been paying £430 per month for the last two years.
My family have offered to help me end the IVA but i am not sure if this possible?
I don't own my own property so there is no equity release clause.

Thanks [:)]

[Oliver]

You could contact your IP and ask them what a reasonable settlement figure will be. This is likely to be in the region of the total contribution due, less the payments you have currently made, less any potential reduction in IP fees (due to the duration lowering).

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[cj2300]

I have just looked through my paper work and have worked out

Remaining payments to make the agreed sum would total - £15480
The fees for the IP etc for 3 years would be - £5148

So the payments minus the fees would be £10332

Is that the way that you work out what to offer?

Thanks

[Oliver]

You may find you need to up that slightly as the IP will need to call a new variation fee, but I would suggest that is a reasonable place to start negotitations.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[iva experts]

Hello cj2300,

It is possible that an individual can finish an IVA early with either an equity release or as in your case help from a family member.

The best way forward would be to contact your I.P and start discussing the possibility of making an offer to your creditors. Just remember that if your creditors do accept your lump sum payment, the IVA will remain on your credit file for the normal period of 6 years from its inception.


Best Regards. IVA Experts

[MelanieGiles]

When I am asked these sort of requests from my own clients, the usual answer is to work out what would need to be paid to effect the original dividend offered. There ought to be no need to make an improved offer if the money is coming from a third party, but of course I am sure your creditors would not turn down any improvement. Ask your IP to provide you with a settlement figure.

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

[cj2300]

Thanks so much for the advice.

The reason behind wanting to go down this route is just to get out of this situation as soon as possible, so it doesn't matter to me that the IVA will stay on my credit file.

What is the best way to go about contacting my supervisor, should i send something in writing? I find them to be a little scary to be honest so just want to go about things in the right way.

Thanks [:)]

[Oliver]

The best thing to do would be to ring them and ask them to send you this in writing. Please don't be intimidated by your supervisor they are there to help you.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[iva_squirrel]

HI cj2300,

I think the best thing to do is to contact your IP and ask him to give you the settlement figure.

Regards,
Michelle P.

[cj2300]

Thanks again for your messages

Thinking about all this stuff takes me back to what life was like before i got the IVA approved in the first place.

I think i am worried that my IP will tell me i can't do it or that asking will cause me problems etc.

[:)]

[Oliver]

Asking will certainly not cause any problems. The worst thing that could happen was that your IP will say no. I think it's a reasonable offer so why not put it to your IP.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[Adam Davies]

Hi
You can do it and it will cause you no problems.
I have written an article titled "lump sums to finish IVA early" located in the articles section.
Have a quick look as it may help.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[cj2300]

I have requested a settlement figure from my company, any idea of how much i should be looking at here?

[MelanieGiles]

I would have thought that somewhere in the region of £15,000 would be sensible, but please be guided by your own IP - he/she has the full facts of your case to work with.

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

[cj2300]

Hi all,

Just heard back from my IP

They say my offer should be in the region of £13500.00

I could offer less but would be down to creditors to vote

Does this sound about right?

[:)]