www.iva.co.uk

Quick question on behalf of a friend. He's contacted his iva company to ask for a settlement figure, as his job isn't secure etc and wants to settle. They have asked him for bank statements, to fill a new expenditure form, etc before they will do this. Is this correct? He would just like to pay the remaining ASAP before his situation takes a turn for the worse and can't afford the monthly iva payments. He's not far from competing his iva and only has around £3,000 outstanding.

Hi,

They will usually want to do an I&E and they will also want to know where the money is coming from to settle.

If his job is uncertain he could also see if they would accept his payments to date as a full and final offer.

Hi - there is a difference between a settlement figure and a full and final figure.

The former means he is asking to know what it would take to pay off everything he owes including fees and possible statutory interest etc.

The latter means a lump sum to pay off early e.g. x times their normal monthly payment.

If they are going for the latter option they need to identify 1) where the money is coming from and 2) make an allowance for any possible equity issues.

Thanks for the replies. His relative has offered to give him the money just to pay off the remaining amount. So to complete ASAP, is it better to ask for a full and final!? His relative could then write a letter to them stating that this money is only for payment of his iva?

It should be fine and a letter from the relative should suffice. In the unlikely event that the offer is rejected he could request a lower monthly figure.