www.iva.co.uk

I’ve recently been accepted for an IVA through a 3rd party company (CreditFix) but when going through the process I was told that I was under no circumstances allowed to offer a full and final settlement unless it was for the full amount of the debt owed (approx £22,500). Payments have been set up for £110 per month.

Are they correct in saying that? The total payments should be around £6,800 after 5 years.

Within the next 12 months my mother has offered to pay a lump sum to me to pay off my IVA to clear it early. But now I’m quite worried that due to what they’re saying I’ll be unable to offer any settlement at all unless it’s for the total £22,500 to pay off all my outstanding debts.

Are this company telling me the truth? Because I would have been almost certain that if I were to offer £7000 after 12 months they would accept it because I’m essentially paying them all of the money up 4 years early!

I’ve read and heard a lot about full & final settlements.. but now I’m really worried that I’m unable to offer one.

Any clarification on this would be massively appreciated!

Yes you can make a full and final offer.

There are instances where creditors propose clauses to limit the offers of a F&F, if that is the case here it will be in your Chairman's Report of the initial creditors meeting and you would have been asked to agree to it before the meeting was over.

Otherwise, with "normal" arrangements with the usual clauses, there is no restriction of you making any offers and the decision belongs to the creditors not CreditFix.