Repaying early

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Post by sadie » Tue Sep 14, 2010 8:57 pm
Hi I started an IVA in April 2009 which runs for 5 years. I am finding it hard to work out how much I would have to repay if I repaid the loan early. The monthly contribution has already gone up by £50 in year two although my costs are higher and my income not. I do have my own house but little equity in it and having changed my job since moving in would have to raise over 6 times my income to around a 120% loan to value to raise any money to pay them. I took the IVA at £193 a month and is now £242 after the first year. For a final settlement does it have to be the remaining time plus the new monthly amount!!!How much of a lump sum would I have to offer them?? as I can't take equity from my house in year four?? Would they just say no and make me carry on for another year or two?? Is there any appeal system if they won't accept the payment??

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Post by Broke of London » Tue Sep 14, 2010 9:12 pm
Hi, it's great you're in a position to offer a full and final payment. In an iva we still owe the full debt plus fees. You will need to offer the creditors as much as you can afford. If you cannot release equity in your property I believe it is usual to extend the iva for 12 there is still an end in sight. Good luck


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Post by kallis3 » Tue Sep 14, 2010 9:17 pm

You usually need to offer as near to the original dividend as possible.

Where would the money be coming from for a full and final?
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.


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Post by carlmcmullen » Tue Sep 14, 2010 9:28 pm
Very hard question to answer, and speaking to your IP would be advisable.

However, as Kallis suggested, as near the original dividend was be ideal, however it depends on were the money is coming from.

If a friend of family member is helping you out then there is a chance they would accept a reduced dividend as they would prefer the money now rather then the risk of the IVA running another 4 years, it doesnt always have to match the original dividend

How are you intending to raise the money ?


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Post by MelanieGiles » Tue Sep 14, 2010 10:21 pm
Is this a duplicate post? If so, I think I have answered it on the other thread.

In my professional experience, the nearer you get to the original offer - especially when you can still demonstrate affordability - the more chance you have of getting creditors to consider the offer seriously.

There is no appeal system - your creditors have the final word.
Regards, Melanie Giles, Insolvency Practitioner
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