www.iva.co.uk

do iva companies ever agree to settle the debt for less than the original balance?

Yes they do. Depending on the companies,they will all accept different levels of return.
Do you mean offering a lump sum payment?? This is called a full and final and normally ends an IVA if its accepted by the creditors.

There has to be exceptional circumstances before creditors would accept a lesser dividend and it is usually more difficult if there is an equity release clause built in.

Mrs Skint is right. Your IP will have to put a good case forward for that to be accepted - but it can be done if your circumstances are suitable.