www.iva.co.uk

Hi, you're doing some amazing work here & I hope you can help me!
I'm exactly half way through my IVA (£30K debt paying off £300pcm). I've never skipped a payment and wondered if it might be possible to propose an early settlement? The thing is i don't know what is reasonable to propose at all. I have £9000 to pay off so is £5000 reasonable? More?
I have the possibility at the moment of overtime - so if i thought that if i basically threw myself into non stop work for a few months it would be absolutely worth it if I could pay this off early... there's no other way i can do it - no home or family and friends with excess cash!
I'd be very grateful to hear your advice. Thanks so much.

You would need to speak to your IP regarding this. Personally I do not think it would be accepted.

Hi
The problem is that if you have the normal 50% overtime provision you will only be able to keep half of it towards an early settlement lump sum.
If you can raise a lump sum then 5k may do it if you have contributed extra payments through overtime as you will probably reach the original dividend.
Regards

You ask is £5,000 a reasonable offer or more?

I assume that you are intending raising the £5,000 through overtime? If that is the case, unfortnately, your overtime should be captured by the terms of the proposals, if not the modifications. As such you should be declaring it at the time of your reviews and paying it over according to the terms.

You should offer the best that you can and not the least you think will be accepted.

Without being in possession of the full facts, it's not really possible to say whether creditors would accept the offer or not. However, if you are intending to raise the £5,000 by working overtime, I do not believe you will be in a position to shorten the terms of the arrangement on that basis, unless you are in a position to pay 100p in the £ back.

What return have they already had from the funds that you have paid in to the IVA?

Hi
Nikkijb will be saving his/her half of the overtime so could conceivably save enough to offer as a full and final
Regards