In a couple of weeks I'll only have 12 payments left on my IVA. A member of my family has offered to give me as a gift £2300 to offer to end the IVA early. My current set monthly payment is £202 per month. I always pay on average £100 extra into my IVA every month due to work monthly bonuses and overtime.
Would I have much chance of being accepted for early settlement?
I am due to move into rented accommodation in a couple of months and the IVA contributions plus current board would almost cover my rent so it would be great to get the IVA off my back.
I am not struggling to meet payments or anything like that so would this count against it?
This seems perfectly reasonable especially if the gift is to allow you to be able to afford to move out. Creditors are usually happy with early settlements and personally I would accept what you are offering.
Seems perfectly reasonable -- the creditors do ( within the reason of economics) prefer to end early too -- it allows them to clear their books of toxic debt.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Do you think they'd rather hold out for the next 12 months as I get extra pay from bonuses which would return more money to them or does OTE not come into it?
They are not guaranteed bonuses and might stop at any time and, so far, I assume they have already got more then they signed up for, so I think they would look on a F&F favourably.
That said, you cannot guess which way they would jup in any situation. I have seen full payment offers rejected and very low offers accepted.
Certainly worth a shot so that you can get on with your life that much sooner.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Well my income and expenditure shows I actually can't afford to pay my contributions and has done for 18 months. It's only my OTE that have made be able to keep up my repayments.
On that basis they may accept a smaller offer maybe?
Certainly worth trying a lower amount but if you go much lower it might not be that tempting. Variation fees are usually restricted to £300 so your initial figure would equate to £2k plus the cost of the variation which to me is a good offer.
Do you have to have a reason to offer a final settlement?
I ask this because having spoken to my IP about it I was told I need to do my expenditure review and show I can't afford repayments to be able to make an offer.
Surely if I just want to end it early (With a cash gift) I can offer whether or not I am maintaining payments easily. And whether or not I have a change in circumstances?
You do not need a reason to make a full and final of outstanding payments. A compelling reason is useful if your offer falls short of the outstanding payments amount.
Your IP seems to be the reluctant party here -- maybe they are thinking of their percentage of those bonuses !
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
