I have a question about making a full and final payment to end my IVA early
My IVA is through Creditfix. It started in September 2017 for 5 years and I believe I made my first payment that month, meaning I currently have another 26 payments to make as payments are sent on the 1st of each month and June’s has just been paid.
Based on my current monthly payment of 161, my calculations would say I would need to offer a payment of 4186 as a full and final, today. I always assumed to make a offer this early, you would need to find a lot more than that to make a better offer they would be likely to accept, but from reading other posts it seems like coughing up another 50% on top may not be necessary?
Currently a family member is offering to pay a full and final payment to around the 4000 mark for me.
In my first year of the IVA I was paying 121 a month, and I managed my finances to ensure my bank statements reflected the I&E statement creditfix put together for me at the start, almost to the penny. But when I had my first review it worked out I had 20 spare a month, and upped my payments to 141 (It seemed like the day of the month I carried out the review possibly impacted this outcome?)
Then the following year it upped it again by a further 20, to 160 per month. Although my incomes and outgoings still hadnt changed.
Since then, and particularly this last year, knowing that my payments will probably be upped again this year but potentially only by a small, manageable amount, I havnt been as strict as I was with my finances. So far this year I have had a lot more activity, incomes and outgoings on my account than I normally would and havnt stuck to my usual pattern, or paid for most things with cash only, like I was previously.
As it stands right now (for example) if I were to do my review today, the difference between all my income and outgoings for the last 6 months (from 6th December) is 272. Which over 6 months could suggest I can afford an extra 45 a month. Meaning that from my next review (in July) with 25 payments remaining, my full and final estimate could increase from 4186 to 5150, so almost an extra thousand. And could be even more if my payments were to be increased any higher.
Would it be too late to make an offer now before my review (July)? I’ve seen previous posts that suggest it could take a couple months for an offer to be put forward to the creditors for approval.
I can’t guarantee that the family member could pay 5000 or more instead of 4000 currently on offer, assuming the total required could increase.
Or, in that scenario, if it increases, would it be best to go through with the review and wait until I’ve made a further 5/6 monthly payments, then look to make offer a full and final offer when the figure is back at around 4000 again?
If I was to make an offer right now, will they want to carry out a 6 month bank account review anyway to see if I could afford more? Would that be part of their general procedure ?
Just want to see what people’s thoughts are really?
Also, while I’m on the subject, ever since I started the IVA I’d always hoped to try and make a full and final payment one day if the opportunity arose...... But, I assume there actually is a benefit of doing this? I could quite easily carry on with my payments until the 5 years is up, with no problem. But I feel like there has to be an advantage in doing so, if anyone has any knowledge on what the benefits are, if any?
I keep telling myself it would help my credit score get back to normal a couple years earlier, if I ended the IVA 2 years early, could I actually be totally wrong here?
Huge thanks in advance, I know there’s a lot of questions in that section of the bible I just wrote haha