Ideas on settling IVA

Get expert opinion. This is the place for new questions to be posted.
2 posts Page 1 of 1

neil122

User avatar
Posts: 2
Joined: Thu Nov 05, 2020 8:48 am

Post by neil122 » Tue Dec 08, 2020 6:24 pm
I’m 2 months into an IVA. I’m paying £100 a month meaning in total I would pay £6000. My parents found out about my situation and they are offering to settle my IVA for me. I’ve seen online this is possible.

What would you suggest I offer based on the fact I have £5,800 left? Also any other advice on how to approach the matter or any other tips

Foggy

User avatar
Forum Expert
Posts: 31796
Joined: Fri Dec 17, 2010 11:14 am
Location: United Kingdom

Post by Foggy » Tue Dec 08, 2020 6:35 pm
You have to base the offer on that £5800 and can reduce it a little to reflect the savings creditors and the IP will make in time and costs over the next five years. This is assuming you don't own your home --- if you do add 12 payments.

Now -- what you could knock off depends on the hit the creditors are taking in the first place (what is your projected dividend?). Your payment is relatively low, so they are probably losing a chunk anyway -- which narrows your field.

Without knowing more I would think around the £4.5k - £5k mark --- but I have seen lower offers accepted, as well as very high offers refused.

Oh .... and check whether you have a sometimes included clause whereby early settlement will not be accepted in the first 6 months or first year of the arrangement.

Remember also that, even if closed early, your credit record will still be shot for the full 6 years.
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
2 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”