A full and final IVA can be proposed straight away and would be better to be proposed before the monthly one is if you are in a position to offer a lump sum.
Where would the funds come from ?
A full and final IVA is certainly an option with funds from a 3rd party, we get many of these approved as crediors often prefer them as they get their money quicker than waiting over a 5/6 year period.
Have a chat to a few companies about your options. How much debt do you have? and how much lump sum could you offer?
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If the lump sum is equal to 60 X your disposable monthly income then it is likely to be accepted, you would simply state that you will be using your disposable income to repay the family member over five years. Do you own a property ?
You could offer less than sixty times your surplus if you intend to petition for bankruptcy as your payments in b ankruptcy would be for thirty six months. Some form of 'happy medium' is likely to be acceptable to creditors particularly as it transfers the risk of you maintaining payments away from creditors and onto your family member.
I always say, especially when its money coming from friends or family - only offer what they can afford and see what the creditors say. The danger in trying to aim for a specific number is that someone is overstretched beyond what they can afford. You have nothing to lose by offering the full and final - see what creditors say, you will find out if they are looking for a higher figure.
Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.
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We do lots of cases like this, and would generally advice clients to steer with the 60x multiple - but at the end of the day it does depend on how much your funder is prepared to lend you, as I imagine the money will need to be repaid at some stage?
Only advice I would give is to clarify 100% what full and final means, these forums seem to be unable to answer that question fully, so talk to you're IP and ask them to clarify in full in writing so nothing can come back and bite you on the butt
