Purely hypothetical in my case I'm sure but having negotiated an IVA is it then possible, if circumstances change considerably for the better (eg a lottery win), to settle up with your creditors and then have your name removed from the Insolvency Register?
If so, are we talking 100% of everything that was originally owed, or might they meet you half way?
If you have a large lottery win, money from parents or friends, you can offer to pay off your IVA early. How much will depend on how much you owed and what the creditors were willing to accept.
You will never pay more than 100% of what you owed, plus fees.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
kallis3 wrote:
If you have a large lottery win, money from parents or friends, you can offer to pay off your IVA early. How much will depend on how much you owed and what the creditors were willing to accept.
You will never pay more than 100% of what you owed, plus fees.
Thanks. So to ask the obvious question, say for instance I owed £90k and agreed an IVA which required me to pay £40k over five years. Then a relative offers to pay the agreed IVA amount in one hit. Obviously you can't speak for the creditors but, in your opinion and experience, would they be likely to accept it? And if so, would my name then be removed from the Insolvency Register?
I remember reading a similar post a while back about being removed from that register. And yes, if you have paid back an amount agreed by the creditors your name will be removed straight away. However, your credit rating is still affected for a year after that.
I think it takes a few weeks before an entry is removed from the register.
Your credit record will be shot for six years from the date the IVA was agreed, regardless of whether or not it is paid off early.
I can't say whether or not they would accept it. Each case is different.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
A lottery win in your name would constitute a windfall and therefore all of the money would have to be paid over to creditors. If the money were to come from a third party that would give you grounds to negotiate.
MelanieGiles wrote:
A lottery win in your name would constitute a windfall and therefore all of the money would have to be paid over to creditors. If the money were to come from a third party that would give you grounds to negotiate.
I think I ought to stress Melanie, following your kind advice on this matter, that my question was completely hypothetical. Regrettably I don't envisage ever being in this position.
