I am a long time lurker in this forum and I would just like to say how helpful this site has been to me.
I am now just over half way through a 6 year IVA and would like to try and investigate ways of completing it early through a F&F settlement.
I need some advice over the equity I have in my property, would it be an option to sell my house and offer the equivalent of the full term of my IVA plus an extra 12 months as a settlement.
I am sure the answer will be that they will want all/majority of the equity (and I understand this) but the flip side is that I will just continue to pay the same amount for the full term.
Hi Lurker! You don't offer both your equity and a 12 month extension... The 12 month extension usually applies in lieu of equity being physically available. How much are you monthly payments? Multiply these by 4 years (assumed 3 years left plus 1 year extension). This will give you your starting point. You can even offer less to allow for 4 years administration costs etc.
Last edited by Lisa Thomas on Fri Oct 30, 2015 4:52 pm, edited 1 time in total.
In my layperson view the best option would to be to get the money from somewhere else (friend, family member etc) to make the offer, then the IVA concludes and all the equity is yours and you use it to repay the "gift/loan" from your friend. You will probably save yourself a lot of money(equity) that way.
I believe offering remaining payments x monthly amount less a bit to cover admin fees that the creditors Would not have got anyway as IP firm deducted them over the remaining term,
My Blog details, the route I took before IVA, how I choose my firm, equity release advice (year 4-5), challenging the CRA's keeping IVA on credit file once gone from insolvency register
IVA ended August 2015. Would recommend McCambridge Duffy
If you cannot get the funds from friends/family you could investigate a secured loan to offer as full and final. If accepted you can then sell as soon as the IVA has completed.
Is there a reason as to why you want to complete early? The iva will remain on file for the full six years from start date and your credit rating won't start to improve?
You may when offering a f&f be required to explain and changes in circs which has led you to offering the f&f such as job change; homelife etc.
Let us know how you get on
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
Thank you for all the replies and sorry for the delay in replying. I have done as suggested by Michael and have now completed my IVA by way of a secured loan. I now have a lot of options available to me and am greatly relieved that the IVA is now over.
