I've just started an Iva at 89pcm for 60 months (Total repayment 5340) My first payment has come out however my partner has offered to give me £5000 to pay off the iva. Would this be likely to be accepted by creditors?
On the face of it I would think creditors would love an offer like this --- with a payment of £89 a month they are getting very little return after fees, admin costs and time are factored in, so saving a lump of those will be enticing.
That said, creditors are fickle things and cannot be second guessed. I would suggest a chat with your IP, but, first, do check your paperwork ( proposal and Chairman's report ) as some arrangements have a block on offers in the first 6 - 12 months. Also make it clear that this money is your partner's ( it has to stay in their account and be paid from there to the IVA in due course) and that it is only available for the purposes of this offer - should the offer be rejected, your partner will be keeping it and it would no longer be available.
Also remember that, even if closed early, the IVA will remain on your credit files for 6 years from the start date and will make getting credit difficult for that time.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I can't see anything on my paperwork that would suggest I'm blocked from making an offer. Will the fact that this will be coming from a loan in my partners name affect things?
Your IP would need to see evidence of the amount being available before asking creditors, which could make timing awkward. Your partner would either have to draw the loan before the creditors meeting -- so, if the offer was rejected they would have a £5k loan for nothing. Or, they might be able to get the loan facility agreed but not draw down any funds until after the offer has been accepted.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
My partner has already drawn the loan and has the funds available. Should it not be used for the iva it will be on furniture however she drew a loan for 5340, the full 60 payments of the iva. We're hoping that offering the full amount will help the creditors accept the proposal. But otherwise the fact that the money is coming from a 3rd party's loan will have no impact?
There are, I have heard, a few creditors who refuse early exit on loaned funds on principle, but we often see situations where relatives have borrowed the money and these arrangements do often get accepted.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
