I have been paying into an IVA for 3 years at a rate of £ 257 a month. My total debt was £ 27,000. I am know thinking of asking a family member whether i can lend some money to finish the IVA 2 years earlier. How much does anyone reckon they would accept? ie would it be the remaining 2 years £257 a month payments or would it be a higher figure as the total debt to start with was £ 27,000.
It would be worth asking your own IP who would have full knowledge of your case but in general if your offer achieves or is close to the original dividend it should be accepted. There may be savings in fees and costs so a figure of £4-5,000 should not be far away but this may depend on other factors such as equity.
If there is a reason for early closure such as threatened loss of job and the IVA is under threat creditors, may accept less as it would be better than bankruptcy.
I dont really want to speak to them yet as not sure if i can obtain the money off the family member yet. I was just looking for a ballpark figure. There would be no equity involved.
Thanks. Would i have to give reasons why i want to finish early other than i am lending the money of parents? Also say if i offered £ 4,000 what is the likelihood of it being accepted with it being £ 2000 less than if i kept paying the 24 remaining monthly payments
