www.iva.co.uk

I have offered to pay off a relatives IVA, the IVA company has suggested i get legal advice. What are the implications on me if i pay off someone else's IVA?

Thanks in advance

They will need to check that you have the funds available and potentially where they came from (money laundering regulations).

The main issue will be whether you expect to be repaid for paying off the IVA and it seems they are suggesting that you sort out what the implications are to you once the money has been lent.

If uyou want to pay it off then you are perfectly entitled to do so. It has no bearing on your credit file and is no different to paying off the debts of anyone. How or if you get repaid is between you and the relative but the IVA has no effect on yourself.

If you are offering this make sure and get a settlement figure rather than just repaying the debts in full. Your relative will be delighted to get the IVA satisfied and you are offering to do a really nice thing.

Hi and welcome,

That's a really nice gesture.

You also need to impress on the IP company that this money is only available for the full and final and the offer will be withdrawn if not accepted.

Hi

You should be applauded for helping out

As others have said there are no implications, personally though I would not hand any money over until there has been a creditors meeting and creditors have agreed your kind offer

Regards

I can only echo what has been said above:

If it was me things I would consider:

1. The money is only available as a F&F IVA settlement in the event creditors agree to accept it by sufficient majority.
2. The amount offered will reduce for each month the person in the IVA makes each monthly payment (these things can take time).
3. Nothing is paid over until them until the creditors outcome has been agreed and written proof of this is received.
4. You might want to stipulate a term is also that the completion certificate be issued within X months also from the payment being sent to the firm/supervisors.
5. The document they send the person your helping May say something along the lines of "if the offer is rejected they reserve the right to enter into bankruptcy etc etc" insist this clause is removed.
6. Do double check the person you are helping g is on the insolvency register (just to make sure they're not in a DMP or similar and mistakenly think they are in an IVA).https://www.insolvencydirect.bis.gov.uk/eiir/
7. Don't over cook your full and final offer, you generally want it to be about the reming term of IVA in monthly payments less a percentage (maybe 10-15%) - again this is gleaned from discussions in here, if you want share the rough debt value, monthly payments and term to run (and if any house equity in name of party you are helping). Also there may be a clause in the IVA that dates if they meet a certain p in the £ it ends so you only want to match that.
8. Also be sure they are not in an interlocking IVA, if they are you would need to settling both parties liabilities.

Some companies might insist you send them the money and then they will make the offer, in my opinion this is not acceptable, what if you sent the money and then the company went bust before closing the IVA, that's why I favour as short a time as possible with money leaving your account.

That's all I. An think of, off the top of my head from a summary of F&F offers I have read on here and my own experience.