www.iva.co.uk

Hi we have been in an IVA for 4 years now. Due to a change in circumstances we have been paying much more than originally agreed. (we pay 2300 per month at the moment). In fact we have already paid more than the original final settlement sum and we have NEVER missed a payment.
We have now had enough and would like to try to arrange a final settlement. I have a relative who may be willing to support us on this. We have spoken to an independent mortgage adviser who we have know for some years and who has occasionally had clients who have been involved with IVAs. He felt that we would be able to offer a reduced sum for early settlement. However, when we spoke to the IVA company they wanted more than we would in fact pay over the remainder of the term. Is this reasonable? My relative would not be able to cover this larger sum. We are considering taking independent advice from another IVA practitioner. Would this be sensible and if so would anyone be interested. Thanks Sandra

Hi Sandra and welcome to the Forum.
It may depend on what equity there currently is in your property as I assume this would have to be released before the IVA completed. This would be in addition to the voluntary contributions but if there is no equity an offer should be acceptable. Given that you will likely have to repay this money it would be unfair to expect you to pay more than you would by letting the IVA run its term so it would be worth discussing this with your IP and not someone from the company.

You are well into your IVA and have returned a substantial amount to creditors so I see no reason for a variation to be rejected. I would not advise instructing another IP as this would incur costs unless it is a last resort. Contact your IP and ask for a face to face meeting and an explanation of how they arrived at their settlement figure.

If you only have a year to go is it really worth going for a variation now? Surely the intention when you borrowed the money was to repay it, so you are now demonstrating an improved position for creditors as a result of your change in circumstances - that is something to be very proud of.

If you are intent on making the offer, the IP cannot reasonably refuse to put it forward, however it would be much better done with their recommendation.

I agree with Melanie.

You are always liable for the full amount of your debt until the end of the IVA when anything remaining will be written off.

I would be proud of the fact that you can pay back more to your creditors.