www.iva.co.uk

Hi - My parents have found out about my IVA, something I wanted to keep low key as you can imagine. Anyway, I told them about the situation and they have offered me the money to clear it, not all of it but enough to hopefully sucure full and final settlement. When I enquired about the settlement process with the company who look after my IVA I was told I need to provide proof of where this money is coming from, which I dont quite undestand, I can get a letter of some sort from my parents but dont know what else Im suppossed to do. Does anyone know what proof they require? Also, they said that a review will have to be carried out on me, again not to sure what this is going to prove as my situation is what it was 5 months ago when I took the IVA. Has anyone settled an IVA early and what was there experience?

A letter from your parents should suffice.

You will probaably need to provide as much information as possible as to why you want/need to end your IVA early.

Try to offer as close to the original promised dividend as possible but remember to deduct what you will save in anual fees.

Thanks Lisa & Helen... Can I ask what you mean when you mention to deduct what I will save in annual fees?

Your IP fees will reduce if you conclude your IVA early Paul.

All the best with your offer x

Deductions in fees for early settlements are largely things of the past, as insolvency practitioners are now generally remunerated on a percentage basis of realisations rather than fixed annual sums- so I would not bank on any savings if the professional fees in your case are worked out in this manner.

The checks your IP will need to carry out, will involve checking the identity of your parents, where they live and the source of the money - which are a necessity under current Money Laundering regulations.

It is amazing how many people try hard not to tell family and when family find out all they want to do is help!!! Why dont more of us have the guts to come clean and tell our loved ones??(that includes me as my Mum would kill me!!! I am 36!!)

Paul

I have told my parents. As we had told no one else i needed to talk to someone other than my husband.

It was a massive thing admitting to them that we had made a mess of things and i have never told them the amount. They think £2000 debt would be a awful amount! If only that is all we had lol!

But it felt good sharing it with someone else.

They wished they had the money to help. But i would never have accepted it anyway.

As a parent, with three grown up kids that at various stages of their education and careers have needed financial assistance, I would be very upset if any of them struggled with debt and felt they could not share that with us - but I do undertand that some people prefer to keep things close to their chest.

Each to their own I suspect!

I'm glad that my kids can speak to me about it, but I could certainly never speak to mine. It would have to be something drastic that meant they found out.

There's only me and my hubby know about our "mess" and its hard but its easier this way than people knowing believe me!!!! Especially family.I hope one day worse case scenerio our boys got into a situation be it how big or small that htey could come to us for advice or help. We all make mistakes as no-ones perfect

I fully intend to sit son down(13 year old) and use us as an example of how NOT to do things moneywise. I always thought I was brilliant with money,refinancing this and getting better rates by switching here and there when in fact I was drowning in a debt pool with a lead weight round my neck that got heavier and heavier with every balance transferred!!!

Paul