in an IVA and I want to settle early

[moh]

Hi,I am currently in an IVA and I want to settle early. The reason for early settlement is that we are not able to do many things in an IVA. An example is that we are expecting another baby and the IVA payments do not reflect on another child. My wife's father is unwell and lives in Asia and with the IVA we cannot afford to go and see him. I am in the process of a remortgage and can raise £6,000 of equity (this is the max with having 10% left).

I will be receiving £1,500 from my father to clear the IVA. I have made an offer to my insolvency practioner of £7,500. My initial debts were about £23K. I paty £250 per month in the IVA and I have been paying for 17 months which means I have paid out £4,250. The total over the 60 months would be £15,000. This means the balance is £10,750. Is the offer of £7,500 realistic? I cannot afford any more cash from anywhere else and clearing the IVA would allow me to move forward in life. Thanks.

[Adam Davies]

Hi
Presuming that you do not have an equity clause in your IVA then an offer £7500 may be enough.
I,m guessing that your original proposal was for about 30p dividend [?],so your creditors would get about 7k.If you add on IP fees of say 5k to include the variation meeting fee this would give a 12k total less the £4250 that you have already paid would leave about £7750 to return the original dividend.
Some IVA agreements do not allow a variation within the first two years so check with your IP.
Good Luck

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