Finish IVA with a lump sum?

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wendy887

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Post by wendy887 » Mon Jan 14, 2019 9:34 pm
I am in an IVA and it was due to finish Aug 18 but I had taken a payment break of 3 months and had asked for an extension as I couldn't afford the monthly payments for a while whilst I was out of work. Can I offer to pay off remaining months with a lump sum?

Foggy

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Post by Foggy » Mon Jan 14, 2019 9:42 pm
You could -- but anything under around 8 months to go probably wouldn't be entertained. A lump sum offer takes 2 - 3 months to set up and requires a creditors meeting which will add about £500 to the costs.

Usually a reduction in the IVA payment due to reduced circumstances isn't repayable, unless you have a minimum repayment clause. How long an extension are we talking about ?
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

wendy887

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Post by wendy887 » Thu Jan 31, 2019 12:21 am
hi
well I was paying £146 a month, then as I was out of work for a few months they let me pay a reduced amount of £100 a month but that meant a change which cost £500 and an extension of 12 months plus the 4 months I'd missed payments....basically my IVA would of finished last August but now won't finish until this December. I was just thinking if I only have ten months left would it be worth paying it off now as I have some owed tax credits and holiday pay due...or just wait...I kow it sounds silly but I just want it Over so I can rebuild my credit rating and feel 'normal' again - whatever that is :roll: :roll:

Foggy

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Post by Foggy » Thu Jan 31, 2019 7:56 am
You cannot use the owed tax credits or holiday pay to pay a F&F as this is money already due, in part, to the IVA. Also a variation for the F&F will cost another £500.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk
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