early final settlement to clear my IVA?

[spon]

Hi There,

Just a quick couple of question's and hoping you can help.

I am currently 18mths into an IVA.

I currently have an outstanding balance of 20k on my IVA, if i came into a position of gaining access to 20k, could i use this as an early final settlement to clear my IVA?

Or as read and didnt understand in other forums that i would have to payback the original debt ( ie. is this the original debt before going into the IVA? )

Or would the IVA just take the 20k payment and i would have to carry on payments until the 60mths is finishe?

Thankyou

[mikebdomain]

Hi spon and welcome to the forum, I'm sorry I can not answer your question as I have very limited expertise in this area – I just wanted to say hello. I’m sure some one will be along shortly to offer help and advice.

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[scaredkez]

it all depends on your original debt and how much you owed, a f+f with £20k sounds great but speak to your original ip and they can guide you further or post your details here
good luck
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[jpj]

You need to ask your IP for a settlement figure ( from reading this forum , some IPs seem to give settlement figures,others dont, but I would push for one) If you look in your IVA contract it shouls state "the minimum P in the £ that you have to pay back...If you owed a total of £20k I doubt the settlement figure would be too high![:)]

[kpw]

Hi Spon
Do you own your property?
Is the 20,000 the total of your contributions still to pay i.e Dividend to creditors + IP costs.
Can help further with a few more details.
But usual proceedure would be to ask your IP for a settlement figure and go from there.

[pic]

Hi,

Thanks for all coming back so quick.

I am not a property owner.

Taking off my Payments of 18mths, i actually have about 17k outstanding on the IVA balance.

My original debt was 53k and this was taken down to around £24600, i pay about £410 per month.

Also does Personal Injury Compensation class as a windfull, and could i use this to make final payment on my IVA?

Thanks
Spon

[Adam Davies]

Hi
Firstly there is no such thing as a settlement figure[unless you are paying the full original debt back plus fees etc] !! your IP can advise you of an amount that they think that your creditors will accept but it will be upto your creditors to say yes or no.
It will depend on whether you have an equity release clause and if you do not then you could offer your remaining monthly payments less a discount for saved IP fees.So in Spon's case then yes this would be a good offer if they have no equity release clause.
To answer Pic's question about compensation it will all depend on your IVAs terms and conditions but in bankruptcy it is normally excluded and is yours to keep.To be sure speak with your IP.
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

[ray_a]

Why not make an offer to start with and see what your IP thinks and go from there!

[kpw]

Hi
Of course I mean by a settlement figure a full and final offer amount you IP feels your creditors might accept to end your iva early. By what you say it sounds like you can proceed. Particularly if your circumstances are such that you can demonstrate that you will have difficulty in maintaining your iva contributions.Your IP should be able to put your case to the creditors and hopefully recommend they accept the offer.

[jpj]

I made an offer to my IP and they came back with a figure 10K less !! luckily they were honest...but if you have a lazy one they might just say ok and put it forward... As I said earlier on in this topic...demand a settlement figure...we pay the IPs fees,The IP should do the calculation, not us!..they are the experts![:o)]