www.iva.co.uk

It is possible to paid the iva before 5 year's?.
As house ower what will happen and the end of the payment of the IVA?

Hi and welcome.

If you can offer a lump sum to your IVA before the end of five years which will pretty much cover what you had to pay during that period then it is possible to finish earlier.

If you had equity release then you would need to address this with your IP.

You could also finish earlier if your debts plus the ip fees have been repaid in full. This could happen as a result of a windfall, overtime, bonuses, salary increases etc...

Hi, does that mean say for an original debt of £30k which the debtors were looking to recoup £15k over the 5 yrs, plus IP fees of again say £6k?, that would be a £250pm sum. If you had paid for 2 yrs (£6k) then would that mean a lump sum offer of £15k - £6k = £9k would be acceptable (or would you have to add IP fees of £6k on top as well)
Just trying to see if the lump sum offered is for a near full amount of the debt (or do they still write some of it off) ?
Also, as you have been in an IVA, does the credit issue of 6yrs still exist even though you finish it early ?

Forgot that one BOL!

You would have to add IP fees on top, and possibly statutory interest of 8%.

Usually a lump sum would close to the dividend agreed for the IVA and you should have a good reason for wanting to conclude early such as redundancy, illness.

The IVA remains on your record for six years regardless of when it is finished.

Many people in reality do settle their IVAs at an early stage - via third party funding or realising assets which were originally excluded from the IVA. The amount required would depend upon your circumstances, the funds available and the attitiude of your creditors.

Look through your proposal documents to see what provisions there are for releasing equity at the end of the IVA, and more importantly what you have to do if you can't.