Now ... "settlement" is the wrong term for what you need do ( and is far more expensive ). You need to offer your remaining payments (adding 12 if there is equity to be addressed) in a lump sum, gifted by a third party (the wife) in "full and final settlement".
Your advisor seems a little muddled in that the creditors will ony add back lost contractual interest and charges if you allow the IVA to fail. In a "settlement", mentioned at the start of the paragraph above, they would be expecting the balance of the full original debt, plus fees, plus statutory (not contractual) interest, currently at 8% p.a simple.
A full and final payment will be based on a lump sum offer, usually equal to the amount of payments you have left to make. The IP won't give you this figure as it is up to you to make an offer to creditors.
Settlement means paying off the balance of your debts, interest and costs in full which tends to only apply if you receive a windfall or have sufficient income to cover this which is completely different.
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