www.iva.co.uk

I have had some serious discussions this weekend with my family who have asked me to look into an early settlement and how it works. i don't want to ask my IP at the moment what the amount would be, as this is a massive maybe, but wondered if anyone can confirm how the figures a normally calculated.

Firstly,

I have made 10 payments of 340 into my IVA, is this to early to request settlement.

How does it work?

I have a remainder of 50 months to pay, at 340 this would make a total 0f 17000, and with the equity release clause, which states that they would expect another 4000 from remortgaging , would come to a total of 21000. saying that, we are in negative equity at the moment, so this would be most unlikely.

Would 21000 be the settlement figure required? or should, if i am lucky enough to be in the position offer slightly less.

Would my name still be on the insolvency register and for how long after the case is closed.

Credit rating - how would this be affected? Not that i will ever touch a credit card again?

My mother has said she will consider releasing a little equity from her property in order to fund this, but wants to know more, before going any further.

Any advice would be welcomed.

thank you

hi i hope you can sort an early settlement as for the register your name will be removed in days but your credit rating will be bad for 6years from the start of the iva

You will need to check the terms of your proposal with regards to how soon you can offer an early settlement.
Are you going to have porblems paying your IVA in the future?
You need to have really good reasons for wanting to end early when the creditors could benefit from ongoing payments, 50% of any overtime or bonuses and a POSSIBLE equity release in year 4.

Your IP would be the best one to give you a settlement figure.

Good luck xx

you wont need a good reason if you are offering near what they would recieve anyway and they would welcome the cash early and as for terms of your proposal for finishing early this wont be a problem also speak with your ip i would think you will need to be near the 20k

Thanks for your replies. I think I will get back to the family and then (hopefully) take it further with my IP. I don't really have a valid reason, except that we recently let our families know the situation and they are considering helping us, if they can.

good luck i hope you sort it and get out early i have been in one 3 years and feel like i am on death row!!!!!![:I]

Its just a discussion stage at the moment, and many of the family are looking down their noses at me and making me feel foolish at the moment, so its not a definate, however, I am concerned about a good reason, as I wont have one, apart from the fact that the family are going to possibly bail me out.

why will you need a good reason?? they are going to recieve what they were going to but have to wait 5 years for it they will snap your hands off i would be thinking of offering slightly lower many iva`s are failing with the price increases etc so i would think they will be over the moon with the offer

i think mrs skints comments on a reason were if you were trying to offer a low dividend you are offering them what they were going to get so dont worry

Well I am going to have to speak to my family again, which may be in a few weeks and then, hopefully contact Blair Endersby! fingers crossed.

good luck keep the forum informed how you get on
you might get a shock it may be lower than you think the ip`s settlement figure and i hope so[:D]

You need to ask your IP for a settlement figure based upon you achieving the original dividend payment.

sorry melanie, i am not sure what that is? do you mean the 21.43 to the £1. I am confused. total debt 56,000?

original dividend of 60 x 340 and 4k i think she is meaning not the overall balance

thank you, just need an idea on figures before any further discussions