Final year of 6 year IVA - Early settlement

[rozzer]

Hi,
I am in the final year of a 6 year IVA and want to know if I am likely to get an early settlement.
I was lucky enough to have no property valuation/equity release clause, but my IP negotiated an xtra year at £350 per month to pay a dividend in lieu of the equity release to the creditors.(I suspect that increased her fees by adding a year)
How much if any reduction on their anticipated £4200 in the final year do you think they will accept as F andF if any.
I am keen to finish now as I want to sell the house and move on......
Thanks
Rick G

[Adam Davies]

Hi and welcome
My gut feeling is that you will not get a reduction due to the fact that a variation meeting will cost about 1k.Your best bet would be to sell up,you do not have to wait until the IVA has finished,and release equity of £4200 and finish your IVA.
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

[rozzer]

Thanks for your help Andy.

I suspected that after 5 years of paying on time they would probably just wait for the conclusion of the IVA as they know they will get paid in full anyway. I am expacting about £2500 in overtime and a bonus this year so I might make them the offer to save that......................

The IP has registered an interest with the land registry so can I sell without their consent?

Also, is it possible that if I sell without arranging a final figure, that they can claim a windfall or variation and ask for more than the outstanding £4200 to pay a higher dividend?

Thanks in advance
Rick G

[Adam Davies]

Hi
I can,t see why your IP has an interest noted on your property as there is no equity release clause.
Talk to your IP and ask them if they will lift the note of interest[although you can still sell with this interest noted] and allow you to pay the remaining contributions when you sell your house.
There is no reason to pay more than the original dividend because of your house sale but check everything with your IP.
If you have any doubts then sit tight until your IVA is finished.
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