I am 10 months into my iva. Extended family are prepared to offer a lump sum of £5K to conclude the IVA.
I have paid £3K to date, which included council tax. There are 50 payments remaining plus a further 12 extra payments in lieu of equity clause. Total remaining is £7.4K
I am considering a career change which would reduce my income plus I'm suffering from depresssion and burnout.
Do think the creditors will accept the lump sum of £5K. The creditors were expecting to receive £10K over the terms of the IVA, now they will receive just under £8K but in the first year.
You need to look at around 48 x normal payment (including equity clause) to come up with an offer.
If the amount that you are likely to earn going forward means that you can no loner afford the IVA creditors may accept.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
If you can put a good arguement they might accept (I have seen low offers accepted, as well as high ones refused!). Over the term they will be saving a chunk in admin costs as well.
There is also the possibility that PPI might swell the IVA coffers too and get the return nearer to that which was expected.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
