Paying off an IVA early

[AndyD2]

I know others have asked similar before, but I wanted an opinion on my personal circumstances.

I started an IVa in MArch last year. Total was £39500ish, after supervisors fees and VAT (?) the total repayable to creditors was £31242 which I'm paying at £598 a month with a dividend of 48p in the £. I have made 10 payments so far so a total of £5980.

My mum has come into some money, and is offering to give me £30,000 to pay off my IVA early.

Is this a reasonable amount? Obviously its less than the total IVA amount less the contributions made so far, but then I thought this may be acceptable as the total amount includes supervisors fees for the whole term of the IVA.

What are everyone's thoughts?

[iva_squirrel]

Hello Andy,

Welcome to the forum.

That sounds like a reasonable offer for a full and final settlement. I suggest you contact your IP as soon as possible to discuss this option.


Kind regards,


Julia


For more information about IVAs, please visit my website:
www.supersonicsquirrel.net

[finebridge]

Andy hi,

From my experience creditors are very happy to take money now, rather than money later. On the figures you have mentioned, I would think you'd have no trouble getting them to agree to an early settlement.

Kind regards
Brian Baker

Finebridge Ltd
22 Laud Street, Croydon, CR0 1SU
0800 180 4212
www.finebridge.co.uk

[MelanieGiles]

I absolutely agree with Brian, and the insolvency practitioner's fees will be reduced as well. Your Supervisor will need to propose a formal variation proposal to creditors at a general meeting, but this is usually a formality.

Good luck - and don't forget to pay your Mum back!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk