settling the debt for less than original balance?

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lindsey.sa

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Post by lindsey.sa » Mon Jun 23, 2008 1:45 pm
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do iva companies ever agree to settle the debt for less than the original balance?
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plasticdaft

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Post by plasticdaft » Mon Jun 23, 2008 2:13 pm
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Yes they do. Depending on the companies,they will all accept different levels of return.
Do you mean offering a lump sum payment?? This is called a full and final and normally ends an IVA if its accepted by the creditors.
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
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Lisa2009

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Post by Lisa2009 » Mon Jun 23, 2008 2:24 pm
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There has to be exceptional circumstances before creditors would accept a lesser dividend and it is usually more difficult if there is an equity release clause built in.
http://mrsskint.blogs.iva.co.uk/ 'Our Story'


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MelanieGiles

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Post by MelanieGiles » Mon Jun 23, 2008 2:27 pm
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Mrs Skint is right. Your IP will have to put a good case forward for that to be accepted - but it can be done if your circumstances are suitable.
Regards, Melanie Giles, Insolvency Practitioner
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