I am in an Iva at present, I have 38 months left and have been offered an early exit loan, my Iva was extended to six years by my creditors, the loan means my payments would go up by £21 a month and be extended by 41 months instead of 38 . Can u offer any advice?
Thanks
For some these loans work. You will end up paying more but the upside is that your financial life will be your own again with no IP looking over your shoulder. If you get a massive pay rise, win the lottery or inherit from Great Aunt Matilda the money will be yours, instead of going into your IVA.
Any PPI refunds from now on will still belong to the IVA and your credit record will not clear up until at least 6 years from the start of the IVA, even if you finish early.
You have to weigh the pros and cons according to all of your own circumstances and feelings.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
By my calculations it will cost you c£861 go down the secured route option.
As Foggy says you need to weigh up the pros and cons. How likely you are to be left an inheritance or earn extra income etc that may have to be paid over in full or part into the IVA over the next 3 years.
You will need to offer your creditors a lump sum as a one-off payment and agree that no more monthly payments are required. They will then accept this as settling the debt and the IVA will be closed. If you want to pay off your IVA early, then you need to first suggest this solution to your IP (insolvency practitioner). If they think it is conceivable that your creditors will consent to early settlement, they will set up something many refer to as a variety meeting. This is organized when you need to propose a noteworthy change to your IVA course of action.
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