settlement

[dd1234]

I am just under halfway through my IVA and am fortunate that I can keep up to £500 of my OT per month (when I can earn it) before the creditors take any extra. I was told that I could use this for any purpose but I cannot use this money to pay off my IVA early (?). As I cannot raise the money to pay off the original debt total prior to the IVA nor can anyone make an offer on my behalf, is there any way other than bankruptcy for me to settle the IVA early?

Any constructive advice would be much appreciated, thanks.

[indebtforever]

thats new to me you can get money from a third party or save this money to finish early

[dd1234]

Thanks for reply - what I mean by anyone settling on my behalf is that I know it is possible for this to happen. But I also am led to believe that strictly speaking its unethical to syphon money to a third party and then get them to present it to your creditors as a settlement offer. I do not want to jeopardise anyone else in my 'mess' or risk recriminations that I am using my money to settle the IVA through a third party. I am in no position to ask a third party to lend me the money either.

[Adam Davies]

Hi
There is nothing to stop you from saving your half of overtime and then using that as a full and final payment
Regards

[dd1234]

Thanks.. ..when you say full and final payment do you mean of the IVA total or the original debt total which is of course much higher? (Sorry to be a pain, but this would make a big difference). Thanks

[indebtforever]

a full and final settlement of the dividend you are going to pay over the 5 years not the actual overall debt

[indebtforever]

what are you paying monthly ?how long left to pay and have you an equity clause at a later date?

[dd1234]

Thanks very much for the advice.. ..If this is definitely the case, it makes a huge difference to me and I will speak with my IVA people again... ..they led me to believe that I could only end the IVA early if I paid off the whole pre-IVA debt figure and not the agreed IVA dividend. Thank you for taking the time to advise...

[Adam Davies]

Hi
The IVA total
The money that you have saved from overtime etc is yours,so can be used to settle your IVA if there is enough.
You have to convince your creditors that it is in their best interest to accept such offer and if you are still earning good overtime/bonus's then they may want to just continue with the IVA.If your overtime/bonus's stopped then this would be a good time to make an offer[if you could return the original dividend]
Regards

[dd1234]

(To answer your question.. ..My payments were originally set at £448 a month but increased to £503 a month for a year with a shift pay rise at work but have now reverted to £448.. ..my IVA is due to finish in March 2011. No equity clause).

[indebtforever]

so you have about 14k to find to give a full dividend ? remember you will save some money on fees approx 1.3k a year and they like their money sooner in most cases

[dd1234]

Thanks very much, reallly appreciate all the advice - this sounds too good to be true! [:)] I just wish my IVA case workers had told me this.

[moretolife]

dd1234....you are the only one so far i have seen that has no equity clause...we are the same...i wonder why we managed to get exempted from this as so many others seem to have it...we didnt even know about it till i started reading this forum and our IP never mentioend it at all...

did yours discuss it...or is it that you rent...in which case...ignore this post..hee hee

[dd1234]

RE Equity Clause... ...I am the same as you - it was never discussed by my IP and yes I rent - no assets at all!