Will creditors agree to settle my IVA early with remaining term, without bringing equity in ?

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David.26

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Post by David.26 » Fri Oct 31, 2014 10:09 pm
I am considering asking a friend to help me settle my IVA early. I have 39 payments of gbp225 left to pay over the remaining term of 5 years. Am I correct in assuming that if this is offered and agreed by the creditors the IVA is complete without having to bring in any equity relating to my house at a later date?
 
 

relieved33

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Post by relieved33 » Fri Oct 31, 2014 11:46 pm
If there is equity, I think that you would need very good reasons for creditors to accept a F&F without it.
 
 

winter_blues

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Post by winter_blues » Sat Nov 01, 2014 6:07 am
I agree. If there is equity in your property then creditors will expect to see a share of this in any early settlement. Full and final offers are ways for creditors to receive early settlement but usually this will be due to ill health or redundancy etc.

As stated in your proposal it will most likely include a clause on equity release and the extension of 12 months to cover this. If your offer was to include the 6th year then that would reflect equity but to omit it altogether would unlikely be accepted but do check this with your original paperwork and discuss with your I.P.
Last edited by winter_blues on Sat Nov 01, 2014 6:10 am, edited 1 time in total.
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luluj

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Post by luluj » Sat Nov 01, 2014 6:15 am
A good starting point woukd be to offer months left x monthly amount plus an additional amount for equity release.

You should make it clear that any money offered to you is only available for the purpose of completing your iva.

If approved your iva and credit files will not be cleared until the 6th anniversary of the start date or date of default.
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Foggy

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Post by Foggy » Sat Nov 01, 2014 9:35 am
As said above, equity will need to be factored in to the equation and I imagine your creditors will want current figures to be able to make a decision.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
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