I owe £1650 in payments could I offer £2000 to end the iva?

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Nickgo0605
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by Nickgo0605 » Fri Mar 16, 2018 4:51 pm
Hi, I've completed 5 years of my iva, couldn't get a mortgage so am in an extra year by 2 months. I was made redundant end of Jan and got a new job 3 weeks later. It's a round trip of 70miles a day so the fuel money is going to stop me keeping up with payments. I owe £1650 in payments could I offer £2000 to end the iva?
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Foggy
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by Foggy » Fri Mar 16, 2018 4:59 pm
Nickgo0605 wrote:
Hi, I've completed 5 years of my iva, couldn't get a mortgage so am in an extra year by 2 months. I was made redundant end of Jan and got a new job 3 weeks later. It's a round trip of 70miles a day so the fuel money is going to stop me keeping up with payments. I owe £1650 in payments could I offer £2000 to end the iva?


To be honest 10 months left, you would be cutting it fine -- considering that, depending on who you are with, it could take between 2 and 6 months to get the variation agreed. If you can get your hands on a lump sum, could the donor just assist with ongoing payments for the next 10 months ? In the long run it would cost them less and you wouldn't be losing anything.
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kallis3
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by kallis3 » Fri Mar 16, 2018 5:33 pm
Agree with Foggy.
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Lisa Thomas
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by Lisa Thomas » Tue Mar 20, 2018 10:02 am
also, why offer more than what you have left to pay?
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kallis3
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by kallis3 » Tue Mar 20, 2018 12:05 pm
Perhaps it includes fees and possible statutory interest?
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Lisa Thomas
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by Lisa Thomas » Tue Mar 20, 2018 12:13 pm
Only if he was settling the total debts, interest and costs in full, which would be unusual?
Nickgo0605
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by Nickgo0605 » Tue Mar 20, 2018 7:36 pm
I don't know why i just thought it might be accepted. The problem is i might not be able to keep the payments going as my fuel bill is alot higher. It would be a pain in the ass to fail now as ive done the 5years and am only in a 6th because i couldn't release equity. I only have 10 payments left but thats still 10 more months in new job paying loads in fuel.
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Lisa Thomas
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by Lisa Thomas » Wed Mar 21, 2018 9:34 am
Your IP usually has the discretion to reduce your contributions by up to 15% without having to ask the creditors.

It's worth you explaining you are struggling to meet the payments.

As regards a full and final the more attractive the more likely to be accepted but I wouldn't suggest you offer more than what you would pay if it continued, if anything often F&F's are less due to the savings in administration costs and benefits to ending earlier but you only have 10 payments left so if you are going to make an F&F you need to move quickly for it to be worthwhile as it will take c6 weeks (if the IP does their job in accordance with regulations) to get the creditors decision.
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