Can I pay my iva off early?

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Eric.55
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by Eric.55 » Sun Apr 01, 2018 12:05 pm
Can I pay my iva off early? And if yes how does it work?
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MerlinL14
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by MerlinL14 » Sun Apr 01, 2018 12:17 pm
Yes you can. Calculate the months left X monthly payment, drop a few grand and make an offer to your IP. They can put this to your creditors and they in turn will vote yes or no. Having the few grand in reserve over the 'total' figure will give you some wriggle room and at base save you this amount over paying the monthly figure until your IVA completes.
Things to consider; do you have an equity clause in the iVA over your house? is raising the total for the Full and Final actually going to leave you better off over that IVA term, your credit rating is still going to be shot for the full 6 years from the start of the IVA.
If you make the F&F offer to your IP then he/she is duty bound to put this forward as a proposal, don't be fobbed off if this is the route you want to take.
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Foggy
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by Foggy » Sun Apr 01, 2018 12:38 pm
Yes. Full and final offers are commonly accepted. The amount to offer is based on the amount you have left to pay ( monthly payment x number of payments left -- plus 12 if you are likely to trigger the equity release clauses). As the creditors will be saving on admin costs ( and the "bird in the hand" value) you can round the offer down a little ---how much will depend on how long you have left as well as the actual amount of your normal payment ..... if, say, you pay £90 a month, it all goes in fees and the creditors are seeing pennies, so they are unlikely to acept a further rreduction. If you are paying, say £500 a month they are seing much more and you have more wriggle room.

Once you make the offer and it is accepted the IVA will close down after you make the payment .... this will be a normal close down and can take 2 to 6 months before you get a completion certificate and are actually free. Yout IVA will come off the Insolvency Register around three months after the CC is issued and it will remain on your credit files until the 6th anniversary of the start date ... even though it will be marked as completed it will still trash your credit rating until it disapears.
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kallis3
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by kallis3 » Sun Apr 01, 2018 3:06 pm
How long do you have to go?
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Lisa Thomas
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by Lisa Thomas » Tue Apr 03, 2018 8:38 am
My short video should give you some basics:

https://youtu.be/h4dozq9aGak
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Eric.55
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by Eric.55 » Tue Apr 03, 2018 12:11 pm
kallis3 wrote:
How long do you have to go?

16 months
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Eric.55
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by Eric.55 » Tue Apr 03, 2018 12:15 pm
MerlinL14 wrote:
Yes you can. Calculate the months left X monthly payment, drop a few grand and make an offer to your IP. They can put this to your creditors and they in turn will vote yes or no. Having the few grand in reserve over the 'total' figure will give you some wriggle room and at base save you this amount over paying the monthly figure until your IVA completes.
Things to consider; do you have an equity clause in the iVA over your house? is raising the total for the Full and Final actually going to leave you better off over that IVA term, your credit rating is still going to be shot for the full 6 years from the start of the IVA.
If you make the F&F offer to your IP then he/she is duty bound to put this forward as a proposal, don't be fobbed off if this is the route you want to take.

I understand my credit rating will still be shot. My dad has retired and got a lump some so is giving me the money to pay it off early so yes I'll be better off. I don't own a house so I have no equity. I never realised you could make them an offer I just thought I'd have to pay my outstanding monthly payments in one lump some. Thanks
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Lisa Thomas
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by Lisa Thomas » Tue Apr 03, 2018 12:19 pm
Best of luck.
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