Very long story short: due to financial difficulties we proposed a variation of a lump sum that was offered to our creditors to be paid by a family member. At the first point we approached our IVA supervisor regarding this we had 11 months still to run on IVA plus the additional twelve months as it was deemed we wouldn't be able to remortgage- so 23 months owed and the payments were frozen at this point. Due to an immense amount of messing about and loss of paperwork (IVA supervisors) and resubmittance of said paperwork (us) we finally had the variance meeting last month- 17 months after starting. Had we just continued as we were, making the payments, we'd have been paid up by next February. We've had two variation amounts now rejected by one creditor and this is the major one. All the others have accepted. We know who this one is and now believe that they will reject everything we propose so we have decided to save time and propose the full amount of 23 months' worth of payments. Can this still be rejected? Can this creditor somehow force us into a larger payment than we would originally have had if we hadn't been so financially crippled as to have to ask for a variance in the first place? I know it is a family member making the payment but it is money we will owe to them, rather than to the creditors and either way, they cannot themselves afford more than the 23 months' worth. And if this creditor can force it to go higher, how much higher? Is there a legal cut off point? I just know that if he were able, this creditor would happily see us lose everything.
Strangely enough the creditor can refuse a lump sum offer of even more than they would get over the rest of the term -- and I have seen it done. Apparently the creditor involved simply refused all offers of early settlement as it is their policy that IVA's should run to term !
What I would try is this -- and it would need the co-operation of your IP: The regular monthly payments were put on hold, so you are "in arrears" by that amount. You could say to the IP / creditors that you are abandoning all variations and will proceed with the IVA as it is currently agreed. In an attempt to meet the original end date, you are willing to pay the arrears in a lump sum ( they don't know if you have been saving the payments up whilst waiting or not), which means there will then be 6 months of refular payments to go --- at least you will finish as originally planned, rather than starting a 23 month slog from now. Surely this creditor cannot object ( and I see no grounds that they would even be asked) to you making up agreed arrears. Even if you go for the "long haul" the creditor cannot add payments.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014 http://foggy.blogs.iva.co.uk