If I was to settle my IVA would I have to pay the full or the IVA amount ?

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by james789 » Thu Apr 20, 2017 11:15 pm
I have a 13500 pound iva I've paid 6 payments of 140 pound already to the iva company. If I was to settle the debt due to receiving money from a 3rd party would I have to pay the full amount to the creditors or the actual Iva amount which is about 10000 which is the amount I would be paying back over the 6 years many thanks ?
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by luluj » Fri Apr 21, 2017 4:36 am
A full n final offer should be based on the number of payments left x the monthly amount.

You would need to explain where the 3rd party money was coming from and that should the offer not be agreed you would not have access to the money.

Remember though your credit record will remain showing the iva for the full six years from the start of the iva.
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by Foggy » Fri Apr 21, 2017 6:47 am
Further to Lulujs advice, I would add that you should not use the term settlement -- to "settle" an IA is to make payment of the full original debt, plus fees and possible statutory interest. A F&F offer, as Luluj says, is to make a lump sum payment based on the remaining payments (plus 12 months if there is equity to be addressed). This can often be rounded down a little to reflect the savings in administration costs both the IP and the creditors will be making over the term.
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Lisa Thomas
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by Lisa Thomas » Mon Apr 24, 2017 8:24 am
Its based on the amount of payments you have left (plus any presumed 12 month extension).

On the assumption the extension doesn't apply to you by my calculations if you have a standard 5 year IVA you have c£7,560 left to pay so this is what your offer should be based on.

Bear in mind if you finish early you will get control over your finances back but your credit rating will still be shot for 5.5 more years.
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