www.iva.co.uk

How long have you got to be in an iva before you can offer a full and final settlement

Hi and welcome to the forum.

You can offer a full and final whenever you like. You would need to offer as close to your original dividend as possible and would need to say where the money was coming from.

You would also need a reason why you wanted to complete early such as loss of employment or illness.

I just had a client get an offer of full and final settlement accepted after three months payments, because she plucked up the courage to tell her mum who wanted to help. There are no hard and fast rules, but I always encourage my clients to consider whether a full and final offer is available from the outset - much better to work on that from day one, than change tack so early on into the arrangement when you are at the mercy of creditors again.

Im confused here. The meeting for the iva is on Thursday. Im similar to the person you say her mum wanted to help. Iv told my mother about the iva. She has said if they would accept the figure agreed she would be prepared to pay it all in one go to make them go away. I wasn't aware you could make an offer like that first. Also if an IVA is agreed how are you back at the mercy of creditors again????? I thought one of the main points of doing this was to stop creditors threatening you.

If the funds are available from the outset to make a one off Full and Final then that probably causes a lot less hassle for everyone. By offering a full and final once in an IVA and by being at the 'mercy of the creditors' simply means having to call another creditors meeting and then have them deciding your fate whether your full and final is a better return than what they will get from you over the 5/6 years.

That's exactly right Judo.

If you can make that offer thislido then it may well be accepted. Speak to your IP about this to see if it is ok to change your proposal at this late stage.

I would pull the contributions based IVA immediately and consider representing as a lump sum. Very suprised that your IP did not discuss this possibility with you beforehand however. I always discuss this as an option with all of my new clients, as if someone is prepared to fund the offer, it is a win-win-win situation all round.