www.iva.co.uk

Hi

im looking at paying off my iva as i have a baby on the way and im having to try and cut down on my expenditure as my girlfriend is losing £500 a month going on maternity pay i have a few questions

im 48 months into my 72 (extra 12 months to protect the equity on a house im on the mortgage of with my brother) so i have 24 months left to pay i.e

24 months x £190 = 4560

because of extra payments i have made into the iva, ppi refund and wonga being taken off the total debt i have paid a lot extra into my iva, i think i have paid about 70p of every £1 (was already paying 55p)

My question is can a full and final settlement be paid by credit card? As this is how my brother has offered to pay it, also he says he can only afford to pay £3500, given that my creditors have received at least £1500 more than originally agreed PLUS more of a dividend due to Wonga being dropped off the creditors list (£1300) do you think this offer will be accepted?

It is certainly worth a try, bearing in mind that they will also save a chunk in administration fees not having to process half a dozen dividend payouts over the next couple of years ( so will your IP).

It seems fair to me too. However if you have to repay this money then the total cost of £3,500 on a credit card would surely be moe than the remaining payments unless your brother has a long interest free period. It may seem attractive to close the IVA but it may not be the best thing for you.

The sheer relief of being out of the IVA may be worth it.

Hi Michael,

i should have said, at the moment i pay 190 a month but i also pay £105 most months as an extra (50% of the extra) as i earn overtime/commission, by paying it off early it means i would save £1500-2000 over the next 24 months, but with a baby on the way i simply cannot afford to lose that much money a month.


it is a good rate on his credit card so that wont really cost me, i was just more concerned about if they accepted a credit card payment from a member of the family as a full and final settlement

Makes more sense now. Not sure about your own IP but we accept credit card payments in addition to debit cards as we have other sides to the business anyway. We are also a firm of Chartered Accountants so may of our clients settle thier bills with corporate cards etc.

Hopefully your IP will be happy to accept the payment but make sure it is not paid until creditors give the okay. Very best of luck with the variation and the baby.