Settlement Figure

[Dizzylizzy27]

Hi

I maybe able to pay off my IVA early but just spoken to the debt company and they have said that my creditors would require all the money owing and would not take a reduced amount.

Has anyone come across this or does anyone have any advice??

[Foggy]

Hi. For starters, until they put the offer to the creditors they don't know the response! Many IVA's have been settled early with reduced amounts -- much depends upon the individual circumstances. Many creditors will prefer a decent lump in one hit, rather than dribs and drabs over 5 years and are willing to lower their expectations in a compromise.

Which firm are advising you?

[Dizzylizzy27]

Thank you for your reply!

Freeman Jones is the company advising me.

I wonder if they have said that as they will lose out on fees for the remaining months on IVA

[Foggy]

I doubt they are saying that to maximise their fees. A completed IVA is a successful tick in the box and there are many out there who will replace you on their books.

I would put together what you feel is an affordable and reasonable offer and speak to your IP about it, not to an office bod.

[kallis3]

Could it be to do with the reasons why you want to finish early? Usually it is do with a change in circumstances such as redundancy or illness.

You would normally be expected to pay back as close to the original dividend as possible.