I am going through the process of setting up an IVA at the moment and have a couple of questions I am hoping someone can answer.
Say for example my circimstances change after about 2 years of my IVA, I win the lottery or family members can offer help. Would it be possible to pay an IVA early in an early settlement payment? If so after how many years in to the IVA could you pay it off early, and would you pay off only what is left of the IVA, or would it be the total amount that I owed originally?
Second question is after a yearly review, if my payments were to go up. Does this mean that because you are paying more towards the IVA, it will then finish earlier. Or does it just mean that you are paying back more of the debt that you owe but still over the 5 year period.
Sorry if this does not make sense, it is just a couple of grey areas that I would like to clarify. I hope someone can help.
If you win the lottery, that money would be deemed to be a windfall and would have to be handed over to your Supervisor for the benefit of creditors. Third party donations are different, and it may be possible to settle the IVA early so long as you make a reasonable offer - which in my opinion should be based on returning the level of original dividend pledged.
If your payments are increased, this does not mean that the IVA is paid off earlier - just that your creditors receive more money.
What advice has your IP given you on these particular areas?
morning matt and welcome
you can finish an iva early through something called a full and final offer whereby you with negotiation with your ip will make an offer of money to end the iva and as when commencing the iva there would be a second creditors meeting to discuss this. i think they like to get back as much as possible to the figure proposed by your ip in your iva proposal but but that would be between you and your ip. a lottery win is classed as a windfall and would need to be paid into your iva.
in answer as best i can to your second query you are correct in that if your payment was to rise after review it means your creditors get a better return rather than it concluding the iva earlier.
just wanted to welcome you and for any help or support you need just post [:)]
I haven't spoekn to the IP about this yet as I have only just been introduced to them as I am gathering my paperwork together.
Do you mean that if I win 8 million for example, I would have to pay the full 8 million into the IVA?? Or would you just pay the remainder of the IVA. If I won that amount I would want to pay back the full amont of debt that I owed to be honest. Not that it is ever going to happen though.
Sorry if this sounds like a silly question, I just want to be sure of everything as this is a big step entering into an IVA.
You would be required to repay the debts in full plus statutory interest and the fees and costs of the IVA. I am sure you would not mind as you could keep the rest of the eight million.
You might receive a few begging letters from forum members as well Matt![:D][:D]
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
But you just have Matt! We might hold you to that!
[:D][:D][:D]
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
