Hi I am just entering my second year of my Iva. My husband and I separated 5 years ago and are now on better terms. I have full custody of the children and have recently returned to university to better myself so I can support my children more independently. My ex husband has offered to pay off what is left on my Iva agreement so that our financial situation is more stable. Would he be allowed to do this? Many thanks
He would indeed. There are two usual ways to pay off an IVA: First is a settlement, based on the repayment of the full remaining debt, plus fees and statutory interest. This is often an expensive option. The second, and most used method, is a full and final settlement (F&F). This is based upon the remaining payments (plus 12 if you are a home owner with equity release clauses) and can often be rounded down a little.
The money for a F&F must be from a third party and paid direct to the IP once the offer is accepted. It should not touch your own bank account. The IP will require evidence of the availability of the funds and the identity of the donor for money laundering regulations purposes.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
