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Posted: Fri Jan 28, 2011 4:09 pm
by Kate.24
Can I pay an IVA off earlier than five years if I am able?
Posted: Fri Jan 28, 2011 4:14 pm
by rayb
Hi Kate and welcome to the forum
In answer to your question yes you can either by offering a Full and Final settlement which would need to be close to the dividend originally offered or by paying the full amount you owed plus statutory fees.
How would you go about paying this off earlier???
Posted: Fri Jan 28, 2011 4:36 pm
by kallis3
You can also pay if off earlier if you get a windfall or bonuses which would let you pay it off in less than five years plus your fees and interest. That would be if you paid 100p in the pound.
Posted: Fri Jan 28, 2011 4:46 pm
by Andrew Bowers
Hi Kate
It all depends upon the source of funds.
If it's from your own sources then it's likely to fall under the windfall clause whereby you'll need to pay the debts, costs and expenses of the arrangement in full plus statutory interest on the debts at 8%.
If it's third party funds then creditors would certainly accept an amount equivalent to them receiving the original estimated dividend; but may consider accepting a lower dividend as a result of receiving funds sooner rather than later.