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
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
