When in an IVA, paying the whole amount off

[r.r]

When in an IVA, is it possible to pay the whole amount off in one go? Either by the person who entered into the IVA agreement or by a third party?

[Oliver]

Your creditors may accept a full and final lump sum payment to complete your IVA.

It would depend on the particular circumstances...... Two examples would be as follows.....

If you won the lottery you would be expected to pay the entire original debt, plus IP fees, plus potential statutory interest.

If someone (i.e. Friend or Family member) was to lend you a lump sum (less than original debt) your creditors would potentially accept this as a full and final payment as long as it was deemed a satisfactory return on the money lent and that you could show that you no longer had and disposable income (i.e. you would now have to use your disposable income to pay the friend/ family member back.)




Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[r.r]

Thank you for the information. I wish my circumstances revolved around winning the lottery but I think that scenario 2 is the more likely of the examples you gave.

Many thanks for your time.

Kind Regards.

[Oliver]

Yes that would be nice, you never know though, ha ha.

All the best with everything.



Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[MelanieGiles]

And don't forget you will also have to pay the IP's outstanding costs to date, and possibly statutory interest which runs at 8% per annum if your IVA also provides for this.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk