www.iva.co.uk

I'm on an iva my parents have sold there house and want to give me some money, would it look better on my credit file if I cancelled my iva and paid my creditors off in full

Speak to your IP as they could make a full and final offer on your behalf to creditors. Your IVA will stay on your credit record anyway for 6 years.

Hi Dave. Paying the debts in full now will make no difference to your credit files as the IVA and defaults will be on there until the 6th anniversary.

What I would suggest, to get the IVA monkey off of your back, is for your parents to offer a full and final settlement. The amount will be based upon the monthly payment x the number of payments remaining (plus 12 payments if you own your own home, in lieu of equity).

This will eat up far less of your parent's money and close down the IVA early, if accepted.

If, on the other hand you cancelled the IVA then the creditors will add back all interest and, possibly, late payment charges, so the debt to be repaid will be significantly higher than that when you entered the IVA.

...or just accept the 'gift' (which is not a 'windfall' and thus does not have to be paid into the IVA).

Keep the IVA going, as it is on your credit file for 6-years regardless, and keep the gift as an emergency fund, get a new car or whatever.

I thought that anything over £500 had to bide by the 50/50 rule regardless of whether it is a gift or not?

Hi

I think a gift from parents/family would be excluded from any windfall clause

Danger of failing the IVA is that the IP may look at bankruptcy if creditors insist on this, unlikely but not impossible

Best to offer a full and final settlement as suggested

Good luck

Regards