I am in the last 6 months of my IVA (last payment due Oct and I pay £320 p/m) and have received an inheritance of £5000. I contacted my IP (Grant Thornton) about using it to make a full & final settlement. They have replied-:
If you wish to put forward a variation proposal to your creditors, our advice would be to put forward the best possible proposal that you can. You need to put yourself in the creditor's position - what can you do to make this offer more appealing to them?
You need to appreciate that proposing a variation has risks in that you are essentially trying to renegotiate the terms of the IVA. As things stand, the terms are set in stone and creditors cannot make any additional demands of you. If you proceed with a variation, creditors can seek to modify your variation proposal in order to maximise the return that they are seeking. For example, they can ask you to extend the arrangement's duration or include an asset that was previously excluded. Whilst they cannot force any change upon you, you should give serious consideration to approaching your creditors again and should only do so if absolutely necessary and on the basis that your proposal represents your best possible offer."
I had to give up work last year as my son is disabled and I am concerned that after the General Election the tax credits & carers allowance that I receive (that have enabled me to continue my iva without interruption) may be cut and I would hate to fail in the last few months.
Would this be a valid reason for my creditors to accept the full & final or do I risk "rocking the boat"?
I am surprised that GT have allowed you to retain the £5,000 as this is rightfully payable into the IVA --- a fact that I am sure the creditors will pick up on.
In any event it would take three months to process a F&F, saving you three months from the term. This will also cost in the region of £500 which the creditors would not be too happy about funding either.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
GT have not let me keep it but are open to me making a F&F offer, or pay it all in and carry on with the agreement.
Thanks foggy, I was suspecting that it would take a while to organise , therefore might as well just carry on as per.
Thanks for your help
Last edited by Sharon.09 on Thu May 07, 2015 10:43 am, edited 1 time in total.
