Finish an IVA early?

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GD.23
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by GD.23 » Thu Dec 07, 2017 9:38 am
If an IVA only has a small number of months left to run, how realistic is it to pay a lump sum equivalent to the remaining payments and finish the IVA early? e.g. a 60-month IVA with only 8 months left.
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Foggy
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by Foggy » Thu Dec 07, 2017 9:41 am
With only 8 months left there is little to be gained --- it takes a couple of months to set up and costs the creditors an extra fee, so they might not be too happy about accepting!
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GD.23
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by GD.23 » Thu Dec 07, 2017 10:26 am
What's to be gained is freedom! How much are the costs likely to be?
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kallis3
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by kallis3 » Thu Dec 07, 2017 10:48 am
By the time it is set up it will be almost finished but your credit record will be shot for the full six years and it depends on which company you are with as to how long it takes to get your completion letter.
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Foggy
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by Foggy » Thu Dec 07, 2017 11:46 am
GD.23 wrote:
What's to be gained is freedom! How much are the costs likely to be?


But you also have to look at what is to be gained by the creditors who have to agree -- it will add between £300 and £500 to their fees. As mentioned, most firms take a couple of months to set this up, some take up to six! It will depend upon exactly what you wish freedom from --- some things do not automatically follow a F&F. Your credit rating will still be shot ... any PPI will still belong to the creditors .... any windfall / lottery win / inheritance that you already know about will also still be payable.
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kallis3
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by kallis3 » Thu Dec 07, 2017 12:43 pm
Also - where would the money be coming from?
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GD.23
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by GD.23 » Thu Dec 07, 2017 8:19 pm
A family member has offered to donate it if I can clear it.
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kallis3
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by kallis3 » Thu Dec 07, 2017 10:10 pm
I would just let it run its course now, especially as Christmas is looming and a lot of companies close down for a couple of weeks.
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