www.iva.co.uk

Hi - my dad has offered to pay my IVA off early for me, obviously I will be paying him back. Am I right in thinking that the fees for the IP stay the same, so for instance if it is £2500 for 5 years if I pay it off in 2 years it will still stay the same £2500?
It's just that it says in my report that the fees are pro rata - so I thought that meant that they would get the fees for each year the IVA runs for not the whole amount if it was paid early?

There are two fees, the first is the Nominees fee for setting up the IVA. This work has already been done so this will need to be paid. The second is Supervisors fees and subject to what your proposal says this may be pro rata, but check for other fees such as variation fees which will be needed for creditors to agree to a full and final and sometimes some IPs include an early settlement fee in the proposal for the work of agreeing creditors claims etc.

However, if you have an offer to settle in full and final, I would not get too concerned regarding fees etc, it is your creditors that will need to agree to a full and final settlement.

Check your chairman's report for a modification such as no variation can be proposed in first 24 months.

Speak to your IP regarding your proposal and he should be able to advise you on what you need to do. eg evidence where the money is coming from etc

Great many thanks.