If I do an IVA and cut my overall debt owed, e.g down to 10k (40% off) can I pay the new amount of 10k off in full next year and not owe the other initial 40% I had taken off ?
All of your unsecured debt will be included in an IVA and there is no saying exactly how much you will be able to write off.
You will always owe 100% to your creditors until your IVA is completed and you will not be allowed to take out any new credit during the IVA without permission of the IP. You also will not be allowed to prefer one creditor over the rest.
Your credit rating will also be shot for six years.
If you are having problems then I suggest you speak to a professional. Visit www.iva.com for a list of companies and reviews and give one or two a ring for some free and impartial advice.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Hi Martin - welcome to the forum. Hopefully you can understand a bit more about the process from the lovely Jan - it is not a matter of cutting it down and choosing when to pay it off. The best thing you can do is talk it through with some companies to undertstand your options in more detail before you make any kind of decision, then you'll know what you are letting yourself in for.
Regards,
Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.
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Sounds like Martin is asking if he can make a full and final settlement after 12 months. I don't know personally, but if that is your intention I would probably keep it to yourself while the IVA is being set up to be honest.
Your creditors will probably be less likely to agree to an IVA if you are that confident of finding that much money within one year.
Hi, You don't cut off any debt until the end of the iva so will repay as much as you can afford. If someone can lend/gift you the money, you can propose an iva on the basis of a single payment. If you are expecting a windfall, then as much of it will be taken as needed to repay your debts in full plus IP fees.
Plus if a windfall doesn't clear all of your debts then the IVA will carry on until you do clear them or the full term is completed.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
