My parents have just discovered I have financial problems and have an active IVA. They very kindly have suggested raising some funds to see if they can 'buy me out' by making a lump sum payment to my creditors. This will not be as much as I have agreed to pay over the five years of my IVA, but would my creditors prefer this or is it a non starter?
Many thanks.
If your parents have kindly agreed to make an offer to your creditors to end your IVA then you should ask the Supervisor of your IVA to put it to the creditors.
Your creditors will weigh up the diffence between what you were originally offering in the IVA and what they can have now. They are usually happy to receive a lower amount as they do not have to wait five years for it.
Speak to your IP and he or she will be able to advise you on what sort of amount your creditors would be willing to accept.
Kind regards, Elizabeth Pywowarczuk, Insolvency Practitioner.
If you would like me to advise you about an IVA and if appropriate propose one for you, please visit my website at www.liberta.uk.com
Hi
Your creditors will most probably prefer this.
Can you let me know your monthly payment,how long you have been in the IVA for and the estimated final dividend.
Finally are you a homeowner with the equity clause ?
I can then give you some idea of a suitable settlement figure.
Regards
I have never had an offer like this turned down by creditors, who do tend to take the "bird in the hand" view - however do try and offer as close the original dividend as you and your parents can afford to guarantee the maximum success.
