Final year - pay off earlier - advice

[Anxiousallthetime]

Hi there,

I’m looking for some advice. Our IVA started in December 2017 and then we had to take a 9 month extension due to my pregnancy with my son, so it’s due to end in September 2023.

If we can, we’d like to pay the remaining balance off in March but this equates to £1,134.00. I don’t want to offer it as a full and final settlement just pay the last six months off earlier.

My concern is, if we do this are they going to question where it’s come from and think we can pay more and am I opening a can of worms. I just wanted to see if we could get it done earlier.

Also if we do this, what’s the process? Do they do another review? They’ve just requested our docs for our review for this year and it always makes me anxious.

The reason I want to do this is because we need to start saving for a house and I want to do this without having to worry that our savings will be taken off us.

If we can do this, when would it come off our credit file - is it a year from last payment or is it the 6th year from the date the IVA started. This is another reason why we’re considering it due wanting to get a mortgage.

Appreciate any advice

Thank you

[Breezy]

You cannot simply "pay off the last six months earlier", without making a formal F&F. You are currently contracted to pay an agreed number of payments of £xx each month. To pay this off early will require a change to the current agreement and acceptance by creditors.

In any event they will question where the money to do this has come from.

Regardless of paying it off early, the IVA will remain on your credit file for at least 6 years from the date the arrangement started.

If there are any worms in that can, maybe better to keep the lid on !

[Mrs_Brown]

I had a one month break with an unexpected vet bill, mine has 3 payments left to make (well on Tuesday it will be 2) over the last six months I would love just to pay it off in one lump sum but with it needing a f&f I have just accepted that I need to pay them off as they are due and look at the light at the end of the tunnel.

[Anxiousallthetime]

So it would be classed as f&f rather than just paying what it is earlier, as technically I should be finishing this December

[Breezy]

One way of twisting it might be to look on the extra nine months that were imposed due to the pregnancy were to cover for, presumably, reduced payments ---- if so, they are to make up for arrears. If that is the case, it could be argued that a lump sum in March is merely the repayment of arrears, rather than contractual payments, so a F&F is not called for. Of course, you would still need to explain where you got the lump sum from.

[Anxiousallthetime]

Yep so we had a 9 month payment break, but if we pay it off next March I’m only paying 6 months. I just didn’t want to shoot myself in the foot but try and pay it off earlier