Hi I started payments for my IVA in March 08 but my IVA got approved in May 08. MY question is that I want to make a settlement figure as my brother offered me to lend some money. In total I already made 26 payments of £295 and 34 payments if £295 left which is £10030. If I want to make them offer what is the sensible offer?
Second thing I want to ask is that when I started my IVA my income was £950 after tax and now I started my business last year and my income is increasing my expected income for 2010-2011 is 30K plus I want to ask that if I pay them £600 instead of £295 will that help to finish my IVA early.
The total amount payable after completion of my IVA would be £17700. If I pay that amount before 5 years will they finish my IVA or I have to continue my payments of the full five years
I think you would need to contact your IP about a F&F settlement, any increase in earnings would need to be reported straightaway to your IP. Have you been completing yearly reviews?
You will never pay more than 100% of your original debt plus fees and if you managed this your IVA would conclude.
By the sounds of it you'll be able to do that in time. x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
If your income has increased creditors would expect you to increase your contributions for the remainder of the IVA. They may reject an early settlement if they believe taht the reason is to avoid paying back extra earnings.
You should speak to your IP and show him/her your latest trading accounts. If your income has decreased, and make allowance for tax and NI, it may be possible to propose a settlement. However, if your earnings are substantially up, your IP may find it difficult to recommend a settlement to your creditors. They would get more by waiting for the IVA to run its term.
Hi many thanks for the reply.
I already made 26 payments of £295 and 34 payments left which is £10030. Please suggest what should I offer as my settlement figure. I spoke to my IP today and she said any amount near to £10k. My brother can only offer me £8500. Do you its sensible offer and creditors will accept that??
Many thanks
The offer seems fine but it may depend on your income and expenditure.If you are earning substantially more than the beginning of the IVA it may be better for creditors to take the extra and let the IVA continue.
If however, your income and expenditure does not show a huge increase creditors may be more inclined to accept a full and final offer.
