www.iva.co.uk

Hi All

I have Payment Protection insurance with my secured loan which should be in the region of £18K. I should be able to draw this in about 10 months times. I can either take this as cash or reduce the balance on my loan.

My question is ; if I take this in cash can i do a Full and Final on my IVA ?

In 10 months time i will have paid 17920.00 into my iva and still have £15680.00 left to pay. Could I offer the £18k as a full and final ??

Has anyone else done this, or what is your advise ?

Obviously if I couldnt pay off my iva I would reduce that balance of my loan.

Look forward to hearing from you all

carol
x

Hi Carol,

Not sure about this, it may be that you will have to pay it across to your IVA and continue with the payments.

You will always owe the full amount to your creditors until the IVA is completed.

One of the experts will hopefully be along to advise further, as I say, I'm not sure about it.

You need to make sure that you complete the forms on time to reclaim this money. I believe this money to be a windfall but creditors may accept it as full and final. We would normally include it as an asset in the IVA as it does not affect your ability to pay. If the balance is reduced rather than the cash taken, this would increase the equity available in year 5 but if there is little or no equity now creditors may take a full and final but you would need to speak to your IP and call a variation.

I actually told Clearstart when we where doing our proposal and they where not interested at all in doing anything with the information or putting anything in the proposal

The fact that it has been ignored may work in your favour as your dividend will jump with these funds coming in. Have a word with DFD who own Clearstart and try for a variation. I would offer the cash only as full and final and if rejected have the balance reduced on my loan. There is not much equity in properties these days anyway so I doubt if you would be creating too much for the 4th year valuation.