cannot seem to find any information to help

[cp5]

I am 1yr into an IVA agreement and have heard about a possibility of paying off the IVA early (before the year 4 anniversary). I cannot seem to find any information to help me with this - can you help?

A family member may be willing to help financially and we could raise enough to clear the total agreed amount by the 30 month stage. Is this a "good idea", what objections could we face from the Creditors and can the Creditors insist this money is raised and we have to continue with our monthly payments[?]

[accgroup]

Hi cp5

It is possible to pay off an IVA early by offering creditors a lump sum in full and final settlement. Your first point of call for information should be your IP, who will be able to provide specific advice relevant to your individual circumstances.

You will need to continue to pay your regular contributions until you are in a position to offer the lump sum. Generally speaking, it is a good idea as it enables you to satisfactorily conclude your IVA early.

Creditors are becoming increasingly resistant to early variations to IVAs, early being within the first 24 months of the arrangement. Offering a lump sum in full and final settlement in month 30 shouldn't be a problem and is likely to be accepted by your creditors if it offers them at least the same dividend as your original proposal. Your IP should be aware of what will be acceptable to your creditors and how they are likely to vote and draft a variation proposal accordingly.

Hope this helps.


AccumaGroup - A large insolvency practitioner service based in Manchester.
www.accumagroup.com

[cp5]

Thank you for your reply - it helps explain things and gives us something to aim for!

It is very interesting to read your guidance regarding 24 months but I know we won't be in a position to do anything by then anyway... 30 months does seem to fit with what is happening with my family and when we may be able to make an offer