Iva

[wilson123]

Hello can anybody help would a full and final lump sum settlement be accepted at the beginning of the iva even though there might be equity in my property. Thanks

[Foggy]

If it is a good offer, yes. You factor in the equity situation by assuming the extra 12 months will be added. So, a lump sum amount would be based on payments remaining, plus 12, multiplied by the current monthly amount. This can be rounded down a little to account for the savings in administration the creditors will make over the next few years as well as the "bird in the hand" factor.

[Keith White]

A lump sum offer is a possibility. Certainly full & final IVA's do happen for tenants and homeowners. It would be interesting to know how much equity was in the property (is it more than your unsecured debt total?) - and if so who the main creditors are. Some creditors are unlikely to accept any kind of IVA if equity is greater than unsecured debt.

[Lisa Thomas]

Yes - any reason why it has become available close to the start?

[wilson123]

My mum has offered to pay a lump sum if it ends the whole thing as I'm extremely depressed. I am seeing someone tomorrow about starting a iva. I'm so scared it won't be accepted then I will lose my house because of my debts. Thanks

[Lisa Thomas]

If you haven't started the IVA then you might be able to avoid it all completely with your Mums gift of a lump sum or just offer a one off lump sum IVA.

Are you seeing an licensed IP tomorrow?

Hopefully whoever you are seeing will be advising whether an IVA is the best route to go as it may not be.

[Foggy]

As Lisa says -- if you have a lump sum available and haven't yet started the process you should consider and discuss other options before committing yourself to a formal, long term arrangement.

Have a look at the section "Possible Debt Solutions" in the menu on the left.

Or, for at least some of the debt, you could aproach the creditors individually with an offer similar to that they would get in the long run in an IVA, but in a lump sum. This could avoid getting your credit files basically ruined for the next 6 years.

[wilson123]

My debts are a huge amount which I'm so ashamed about I don't think there is any other way

[Foggy]

My debts are a huge amount which I'm so ashamed about I don't think there is any other way

Among current posters we range from £10,000 debt to over £100,000 and a fair few IVA's out there have an extra zero on that!