Both myself and my husband are in an iva with payplan. We are in the 6th and final year (extended from 5 due to no equity). My husband is 61 and likely to be retired due to ill health. Will payplan accept the rest of the years payments in a lump sum as full and final settlement? I am happy to continue with mine.
How many payments do you have left? When I considered paying a lump sum in the final year Payplan advised it would take a few months for Creditors to approve by which time I would only have 3 payments left to make anyway.
Could you keep the lump sum payment on one side & use it to make monthly payments until the end of the 6th year?
Last edited by dancer on Tue Apr 21, 2015 9:11 pm, edited 1 time in total.
HI Lara - it is definately an option. Think about where the funds are coming from though - if you are finding the money from your own income then you may need to pay more contributions into your own IVA if you have a surplus available. You could even offer less than the payments due as crreditors will be paid off quicker and it can keep the Admin costs down, although if you have only a year left and there is a variation fee it may not make too much diference. Speak to your IP about it but remember it's down to your creditors to decide at the end of the day. Dancer's suggesiton is a good one if funds are coming from a third party. Good luck.
Be careful any lump sum is not grabbed by the IVA. Make sure that any settlement is agreed before the lump sum is drawn down or borrow funds from family and use these for the full and final.
Payplan advised me that any lump sum received from a pension would be regarded as a windfall and would be payable in to my IVA. A friend kindly provided funds to offer a full and final which was accepted on 12 January 2015, but as yet I am still awaiting my completion certificate, despite being told this would be sent within 3 months. Based on Payplan's view no pension lump sum should be taken until completion certificate received!!!!
