I had an IVA approved in April 2013 and have not defaulted. I have £7500 left to pay £202 a month. We took out IVA because of financial difficulty paying costs of the care & facilities needed to assist our child's brain condition (we don't qualify for any benefits). I have some equity in our home (shared ownership with partner but he's not named in IVA) so I will be due to have our house valued in month 54. But I'm concerned we need the full equity to pay for our sons future, a brain scan shows he's deteriorated this year. Our costs are increasing although I can still afford my IVA payment. Can I apply to settle my IVA early in these circumstances? What figure would be likely to be accepted? I'd like to clear my IVA debt & have one less thing to worry about. I'd be grateful for your advice. Many thanks.
Hi Kirsty. I'm so sorry to hear about your son. First of all I think you should approach your IP about this and see if you can vary your IVA to accept payments made to date in F&F and finish your IVA on basis you won't be able to afford continuing payments. In your calculation of £7,500 have you allowed for the (presumed) 12 month extension that might apply to you and included the £2,424 for this? I would think if £7,500 is the final figure including equity you could offer c£7k for F&F. IN addition if your income changes your monthly payments might be reduced accordingly bringing down the settlement figure also.
I am sure creditors would be sympathetic and hopefully accept any reasonable offer. I would think £5,000 may be tempting to them although it could also depend on the actual level of equity and who the creditors are.
