www.iva.co.uk

Hi to you all, i need some advice please. We have an iva running with Langleys, to date we have made eight payments-2 x £890 and 6 x £705.Total debt is £56000. We have the fourth year equity clause built into the agreement. My question is, what would be a realistic offer to end the iva early?

Hi zim zim and welcome to the forum

I don't feel it is very realistic to offer an early settlement so soon into the IVA, unless there are good reasons for this such as a change of circumstances or reduction in income.

Where would you be getting the money from to offer the settlement, and what is the value of your property now and how much equity is there.

Hello Melanie, thankyou for the reply. The money would come from family who have offered to help and in turn we would pay them back accordingly. As for the equity, the property is worth approximately 130-140 and the outstanding mortgage is £105000. The equity release clause states they only want my half of the equity.

I would have thought that you are therefore looking at somewhere in the region of £40k, but if you were my client and there were no other reasons other than the motivation to want to end the IVA early, I would probably ask you to wait until the anniversary of the IVA - and you also need to check whether variations are permissible during the first two years, as these days a lot of creditors do not permit this.

Hi again, sorry to be a pest but why would it be unrealistic to try and offer a settlement? I do appreciate that a lot of work goes into getting an iva agreed but if a realistic offer could be made would that not be a benefit to all parties concerned?

Sorry Melanie, posted the last before i read your reply. As far as i am aware there are no variation clauses attached to the agreement.

It's just the attitude that some creditors have about attempts to settle early. Probably best that you speak to your IP about this one, who at the end of the day has to put his/her name behind any revised offer.

Melanie, many thanks for your time and i really wish i had found this site before entering into our iva, i would have jumped on you like a shot (could have phrased that better but i'm sure you know what i mean).

I am very flattered by your comments Zim Zim!!!