I have been in my iva since August 2017 and am halfway through my arrangement. My parents have kindly offered to take out a loan to pay off the remaining £7500 I have left to pay.
My mum has an excellent credit rating and would almost certainly be accepted for the loan. However, I am terribly nervous about her taking this loan if there's a chance the creditors wouldn't accept my F&F offer. Would my mum need to get the loan before the creditors meeting or could I wait for the offer to be accepted before she applies? I am intending to offer the full amount left on my agreement.
Before asking creditors for a variation the supervisor must ensure funds are available, so the loan must be in place when you make the offer. As long as the loan has no early repayment penalties she could simply pay it back if the offer is refused, costing a months interest or so .... but check with the lender that this is in order.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
SteveUK has a point. But, of course the interest over the repayment period might be offset by the fact that you are free of the IVA and it's obligations.
I would mention though that many F&F offers are rounded down a little to reflect savings in admin as well as time for the creditors, so you could offset some of the interest that way and offer a lower figure. Obviously the higher the offer, the better chance.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I know it seems counter-productive, but the iva is very limiting. I have just been offered a promotion at work whereby I will be receiving commission which would then be taken, in part, by the iva... so it is more sensible to swallow the interest and keep my commission I'll be receiving.
Called my advisor this morning and they have outlined what I'll need to do, so I'll keep you posted
