www.iva.co.uk

Afternoon

My husband has 22 payments left on his IVA and my mum has offered to gift him the money to settle in full.

We just aren't sure what to offer. When the IVA was set up payments were £220 a month and now they are £380 so not sure whether to base it on current payment or original.

Sadly, the IVA company aren't helpful at all, they don't even conduct the yearly review until 3-4 months after each anniversary so I don't feel we can approach them for advice.

Thanks in advance.

The offer should be based on the current payment, and take into consideration any equity, by adding 12 months, unless you can demonstrate equity would be less than £5k (assuming you have the usual clauses).

Without equity the creditors will be looking at getting back £8360, with equity, £12,920.

I would put forward an offer of £7.5k, or £10k, but be prepared to up it a little if need be.

Thanks for your response. We aren't home owners so I presume the equity part wont count in this case?

Equity won't come into it at all.

It's as Foggy states - based on what he would pay if the IVA continued in the normal way now for the next 22 months

If you are not home owners the 12 month extension will not apply so the offer should be based on £8,360.