I am on an IVA and I have about 1.5 years to go.

[J.N]

I am on an IVA and I have about 1.5 years to go. I am paying around £370 pcm on a debt that was of aroun £43,000 in total.

I am reaching my 40th birthday and I want to start finally settling. It has all been very chaotic recently in my life, so I d not have any savings, but I am with someone who is willing to help me.

I wanted to know, from you guys experience, if I proposed to settle for around £5,000 the IVA, what are the chances the supervisor/creditors might accept? or perhaps could I go slightly lower?

I understand you have to leave it a little while before even consider buying anything, but I just checked my credit score with experian and it says 'Fair'. Maybe there is some hidden info in there?

Thanks ever so much for your help.

[MelanieGiles]

Hi there and welcome to the forum

You have to have good reasons to offer an early settlement which represents a lower return than creditors would get from continuing to collect your regular payments.

Assuming that you have 18 months to run at £370 per month, this would give creditors £6,660 so your offer of £5,00 may be accepted but it also may not. An offer of around £6,000 might be better received.

If, however, you have suffered from a change in circumstances, or are struggling to meet the repayments to creditors, then you may have good grounds to short settle. Have a chat with your IP for more specific guidance.

[jeile]

Thank you very much Melanie for your advice and Helen for your lovely thoughts.

Melanie: I am a little scepctical about talking to my IP as I have always had the feeling they are actually more on the side of the creditors (or their own side sometimes -given they get quite a lot of the money I pay monthly-).

So, would it be wise to mention the fact that I'd like to settle due to wanting to buy a property in the future? - will this perhaps raise more questions? - I do not have the money right now at all, but I would like to use the next year or so to start building up some sort of deposit while my IVA clears from my credit record (I think?)

Obviously, whatever I offer them as an early settlement will be dependant on what my partner agrees to lend me (I will no pay interest back) but I am a little hesitant to go beyond the £5K mark. I have been struggling with the repayments but I have not missed them although it meant I sometimes had to be extremely frugal with my life.

Thanks so much for your help again

[MRBLUESKY]

hi jn you could offer 2 monthly payments with the £5000 as a full and final offer as it would probably take aprox 2 months to sort the paper work and a date for your variation meeting.and you would be continuing to make normal payments anyway until your offer was hopefully accepted.

[Skippy]

Good luck with your offer, let us know how you get on x

[MelanieGiles]

I suggest that you talk to your IP to see if they feel the £5k offer is viable. You should not be afraid to talk to your IP - they are there to see fair play on both the part of yourself and your creditors, and should not be making you feel that they are only batting for one side.

[kallis3]

Good luck from me as well.

[jeile]

Thanks so much guys, and Melanie I will speak to my Supervisor. I will let you know how I get on. Happy new year! xxx

[kallis3]

Look forward to a positive post!

[Declan at DebtFreeDirect]

Best of luck from me Jeile. Hope it goes okay.

Thanks