I have a lump of money coming from a SIPP pension transfer that will be paid into my partner's bank account.
Can she pay off my IVA early (one year early)?
Would they settle for less?
I was going to use this money to pay off some of another credit card that I have been using that wasn't part of my IVA as it had zero balance (yeah I know!!), but might be better to finish the IVA early and then use the £400 a month freed up to pay off the card instead.
Will the IVA still not drop off until 6 years even if it's finished early as I want to get a mortgage with my partner.
I think the pension lump sum may be seen as a windfall by your IP and payable into your IVA, however it is worth chatting with them to see if they will accept a sum equal to your remaining payments and settle your IVA early.
A record of the IVA will remain on your credit file for six years from when it started regardless of when it finishes
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Andy Davie
Hi James
I think the pension lump sum may be seen as a windfall by your IP and payable into your IVA, however it is worth chatting with them to see if they will accept a sum equal to your remaining payments and settle your IVA early.
A record of the IVA will remain on your credit file for six years from when it started regardless of when it finishes
Regards
Hi Andy
Well the amount is virtually the same as the remaining on my IVA so if they take it as a windfall and pay it off then I guess that's fine.
unfortunately James it doesn't work like that, you always owe the full amount of your original debt until the IVA concludes so the 'windfall would come off that, not what was agreed at the start of your IVA so if they took this as a windfall your IVA would still continue to the end, it would just increase the dividend
As other have said your IP/IVA may have diffrent views
Also concerned that you have a credit card debt post IVA - you may find this seriously affects your IVA - everything, interest free included should have been included in the IVA
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by lem
unfortunately James it doesn't work like that, you always owe the full amount of your original debt until the IVA concludes so the 'windfall would come off that, not what was agreed at the start of your IVA so if they took this as a windfall your IVA would still continue to the end, it would just increase the dividend
Thanks Iem
I understand what you are saying so does that mean if you are paying back say £25K on a £50K debt over 5 years and after 4 years you have a friend willing to give you £5K then it won't pay off the IVA?
If so then surely people paying off their IVA a few years in are paying a serious amount more than they would if they just carried on paying the monthly amounts until the end.
5K gift from a friend, is treated diffrently from a cash lump sum due from a pension.
You need to check your own proposal and speak directly to your IP about this - only they will be be able to give advice tailored to your IVA proposals.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by ginger3232
browJam - welcome to the forum
As other have said your IP/IVA may have diffrent views
Also concerned that you have a credit card debt post IVA - you may find this seriously affects your IVA - everything, interest free included should have been included in the IVA
Hi ginger3232
Yeah I know it's not great but due to a failed relationship a year into my IVA and me having to move I just had to dip into the credit card. My idea was after the IVA has finished to carry on paying off the card with the IVA money and it should be clear in another year.
The only alternative was for my IVA to be re-assessed and I just didn't want to risk messing it all up.
Can the IVA people see my credit report to know I have this other card? It's never been mentioned.
I have been paying back the same monthly amount for 4 years as my income hasn't changed and given them no hassle so maybe I've been under the radar!
The IVA companies - will not look at your credit reports anyway - its up to you to be upfront and honest and accept what MAY happen if they find out.
I would NOT hide your pension windfall though - even if paying it into some elses bank account.
Again the idea of the IVA is to pay back as much as you can afford and at the same time have protection of it, part of that is working within the terms and conditions of the IVA (a legal contract) , and at the end of it - any money you can not afford is written off
How have you been managing to pay £400 per month towards the new credit card, whilst your are in an IVA and thus accountable to your IP for your total income and expenditure on an annual basis?
Honesty is the best policy and I woud encourage you to speak to your IP to work through these issues.
Your own proposal document will provide you with specific terms for your IVA and although we can provide general advice on the forum we cannot give specific case advice.
I like Melanie am concerned that you have managed to service a credit card payment as well as your IVA payment each month ...your I&E clearly needs a full review in my mind.
An IVA will remain on your credit files for 6 years from ts start date irrelevant of when it is concluded.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by MelanieGiles
How have you been managing to pay £400 per month towards the new credit card, whilst your are in an IVA and thus accountable to your IP for your total income and expenditure on an annual basis?
Hi Melanie, it's not even close to £400 a month and I have a very generous girlfriend thankfully. To be honest I am so close to the end of my IVA and it has all gone pretty smoothly I just want to keep going for another 11 months and be rid of it.
