Can i pay off 12 month equity extension with lump sum offer?

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by tom » Mon Oct 09, 2017 2:44 pm
My wife and I are at the end of our normal five year term of our IVA (two plans) with PayPlanPlus. We have too much equity in the house to just end but they have agreed a 12 month extension.

I enquired about borrowing money from family to pay the 12 month extension off in one lump sum in order to exit the plan. Can I assume that the amount they can expect us to pay is just the equivalent of our usual monthly payments?

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by Foggy » Mon Oct 09, 2017 2:56 pm
You are essentially correct. Often we can reduce such offers slightly to reflect savings in administration, but a year will not give enough wriggle room, so nigh on the full payment amount would be the way to go. A word of caution: Payplan are nortoriously slow at presenting these offers (most firms get it done in 2 months, 3 at the outside) and often take up to 6 months to get these through. It is advisable to mention in the offer that the lump sum will be reduced by any payments made in the interim.
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Lisa Thomas
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by Lisa Thomas » Mon Oct 09, 2017 3:47 pm
I agree with Foggy so take care on ensuring your contributions are deducting whilst you await a decision.

It should only take 5-6 weeks and they are duty bound to call the meetings etc in those timescales but this doesn't stop them form taking longer and you may find it doesn't make much difference with only 12 to go.

Any reason for wanting to close it down quicker?
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