I have been in an IVA for nearly 18months. I owed just under £25k, mainly on credit cards (6). I currently pay £200 per month into IVA, although I just about manage to cope financially this is because I am living back with the parents who help me out! I am 31 so I really want to be independant and dont want to have to live with them untill I'm 35! My Mum is due to inherit some money in the near future (waiting for house to be sold) and she has offerred to lend me some cash so that I can offer an early settlement to my creditors and 'fly the nest'. She is willing to accept lower payments of £100 each month over a longer period of time. My question is would an amount of around £8000 be enough to settle or does it need to be closer to the full debt amount? If it is the full debt amount, is it possible to claim bank and card interest and charges while in an IVA as a big portion of my debt is from this, and that would bring the overall amount way down?? Also originally all the creditors accepted the IVA except for 2, I got 78% of the vote. These 2 creditors have yet to make a claim - could hinder the chances of early settlement? Any advice would be appreciated, thanks.
I wonder if you thought ahead enough at the outset of the IVA, with regard to living with your parents at preferential rates to enable you to repay your debts? People often don't and the relief of getting an agreement in place can often take over the long term view.
I would have thought that £8k in full and final settlement would be a very sensible offer, and you should see if your IP is prepared to put it forward. Life needs to move on, and you can always pay your Mum back by lower amounts as she has suggested.
Good luck with everything and let us know how you get on.