I run a ltd company and i'm 2.5 years in to a 5 yr iva. my invoice factoring company have offered to pay off my iva. i assume it gives them more security on me personally. my main debt is hmrc. is it possible to end early and would hmrc take a reduction for a lump sum. they insisted on 100p in the pound when the iva was set up. the value is around 150k with 75k to pay.
It is always worth exploring as you have nothing to lose by having the new proposal presented to your creditors. If there is good justification as to the why the IVA should terminate early with a lower dividend then creditors will consider it. Your IP is duty bound to go back to your creditors but a good one will also advise you well should what you are proposing be almost certain to get rejected.
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Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.
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I doubt very much that HMRC would compromise on their position for an early settlement, and I have to say it seems highly unusual for an invoice discounter to want to advance funds to you personally to pay off your IVA.
