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I am almost three years into an IVA agreement and to date have kept up with my side of the bargain. I am in a position where a family member is prepared to assist me in clearing the IVA early. What is the best amount to offer as a starting point. Will the creditors even entertain a lower offer then they would receive if they went the full term or will they be keen to get rid of the IVA early like I am?

I don't know the answer, one of the experts will be along shortly, but may I welcome you to the forums? [:)]

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Times the amount you pay a month by the amount of months remaining ie, pay £500 a month, 24 months left that equals - £12,000, less £1000 for every year left ie reduction ip fees which would be £2000, which leaves £10k as a final settlment figure.

Do you own a house i understand that some creditors wont do an early settlment if you own a house and have equity clause in thea IVA.

I am sure an expert will be along soon to confirm/correct what i have said

no matter how bad money gets, theirs stll alot more important things in life

Hi there Jonathan and welcome. A good amount would be to make an offer of the same amount as the original proposal or a pence or two more in the pound as a little sweetner. Wait for more answers though.

Ang

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James is largely correct, but as an IP I would be much happier goint with Ang's suggestion. More money and earlier too! They would have to bit your hand off, and of course you have to pay your relative back, so it is still ongoing hard work for you.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

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Hiya, In my experience you need to at least offer in line with the terms of your oringinal proposal which was agreed by all the creditors. In most cases your creditors will reject your settlement figure if they are not going to get back what they oringally agreed to as the return, and will simply continue with the IVA as is for the remainder of the 5 year term. If your propsal was 36/£ and you wish to settle early then speak with your IP find out firstly what funds they currently hold in the bank from you and the cost they would deduct from this for the Variation Meeting which will be held to agree to the settlement. You also need to enquire exactlty what fees they would be looking to draw from these funds in the bank inline with what they see as the realistic timeframe in which they can agree the settlement and finalise your IVA, with the settlement monies already in hand as the funds will have to be in their bank ready prior to the Variation Meeting. What ever is left over after the cost of the variation meeting and their fees you can then use together with the correct sum of money required from your relative to clear you IVA early. This is what I done and I have to say it pays to ask questions of this nature as I ended up paying £2,000 less then I would have offered in my settlement. Good Luck and I hope this helps you in some way.

Please also bear in mind there is also a windfall clause in your IVA agreement. You will have to make it very clear in your letter of offer to your IP that your relative is offering the funds as a 'one of gift' payment to clear your IVA early and should the offer be rejected the sums will not pass to you.

Hi
Just to add that creditors will accept a lower than originally agreed dividend in a full and final offer if it can be shown that the original payment terms of the IVA can't continue due to various reasons eg;reduced income due to sicknesss,redundancy,personal problems etc etc

Andy Davie
IVA.co.uk Spokesperson and Website Manager

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IVA Helpline: 0800 197 4838
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If you can justify why creditors should accept the new (presumably) reasonable offer there should be no reason why creditors should not accept the offer.
Consult with you IP for further clarification
I would be interested to know how you get on
Dave Beech