Early settlement

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andrews
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by andrews » Thu Oct 12, 2017 11:05 am
My IVA started in October 2013 a such I am in my 4th year. I have paid £5772 of the total which leaves me owing £6000. I have been offered as a gift £3000 by my brother. I want to pay to settle the IVA early and have a few questions?
How long is the process form start to finish?
Once the process has started do I need to continue to make the payments?
in your opinion is £3000, 00 something that they would consider?
If the offer is declined is there an option to negotiate?
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Michael Peoples
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by Michael Peoples » Thu Oct 12, 2017 11:12 am
The offer may be a little on the low side unless your situation has changed making ongoing payments difficult. However it is your offer and your IP must put it to creditors if you ask. If rejected you can increase the offer so worth a try. Timescales vary between firms so put your request in writing directly to the IP quoting the terms and conditions. These usually specify 21 days but some firms can take much longer and try to fob you off.
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Foggy
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by Foggy » Thu Oct 12, 2017 11:13 am
How long is the process form start to finish?
Generally a couple of months, sometimes three. However some take up to six !

Once the process has started do I need to continue to make the payments?
Yes, unless you agree a break with the IP (would only be agreed if payments were impossible). You can specify that the lump sum will be reduced by the amount of any interim payments made.

in your opinion is £3000, 00 something that they would consider?
It depends upon the amount actually left to pay. The sum is usually based on the number of payments remaining multiplied by the current amount and can be reduced a little from that.

If the offer is declined is there an option to negotiate?
You could up the offer, but would only get one bite of that cherry, as an offer is supposed to be the best offer you can make. So endless incremental offers would be frowned upon.
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kallis3
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by kallis3 » Thu Oct 12, 2017 11:57 am
Don't call it a settlement - it has to be a full and final offer which will be rescinded if not accepted.
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Lisa Thomas
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by Lisa Thomas » Fri Oct 13, 2017 9:13 am
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