Going self employed in last year of IVA

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nhb77

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Post by nhb77 » Fri Aug 06, 2021 7:24 am
Hi,

I started my IVA in December 2017 so next December will see my completing it. I am currently working for a toxic manager and my job is making me seriously unhappy. I know I need to leave, but I don't want it to effect my IVA.

I have had a few small pay rises (always declared) and a few bonuses (again always declared) but I have saved every bit of the 10% I was allowed to keep, so I have a pot of money which would cover my IVA payments for next year if I struggled to make money self employed.

I am looking to leave my job in December after completing my income and expenditure for the year - if next year I keep paying my IVA on time as normal will it matter if I have not earnt as much on my last income and expenditure? They wouldn't be able to fail me if I have carried on paying the same amount would they?

I'm worried but also know my mental health couldn't stand working for this manager any more and I know that I want to make my business work and I need to start focusing on it (currently making good sales but just breaking even, but when spending stops I should be able to make good money in a few years)

I hope this all makes sense and that someone can help me out on how this works in the final year of an IVA!

Thanks x

Foggy

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Post by Foggy » Fri Aug 06, 2021 9:29 am
I can see no problem as long as you continue to make the agreed IVA payments. You could consider making a full and final offer, to bring it to a close early, by offering the remaining payments as a lump sum.
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

nhb77

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Joined: Fri Aug 06, 2021 7:16 am

Post by nhb77 » Fri Aug 06, 2021 12:00 pm
Fri Aug 06, 2021 9:29 amFoggy wrote:
I can see no problem as long as you continue to make the agreed IVA payments. You could consider making a full and final offer, to bring it to a close early, by offering the remaining payments as a lump sum.
I was wondering this and would like to do it - but I was unsure as to whether a lump sum needed to be the whole amount owing rather than what I would pay if I continued paying the monthly payments? I would have no way of paying the whole amount but I could pay the lump sum of what I would pay in the end... Any advice would be amazing on this, it would be great to go into the next year starting my business a fresh! Thank you

kallis3

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Post by kallis3 » Fri Aug 06, 2021 12:14 pm
It would be the amount outstanding on your IVA and you could consider making a slightly lower offer if you wished.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk

Foggy

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Post by Foggy » Fri Aug 06, 2021 12:26 pm
A Full and Final is based on remaining payments. A Settlement is based on debt and fees outstanding.

Normally a lump sum payment comes from a donor ( friends or family) but, as long as all extra income has been properly accounted for, I see no reason why it should not come from your rightful shares of this extra income --- after all the creditors have already benefited from this as well.

As Kallis says, the F&F can often be reduced a little, but, with only a year to go you do not have the same wriggle room as someone who might be knocking 2 or 3 years off.
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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