Can I pay off the outstanding balance of an IVA

[dave.dd]

Can I pay off the outstanding balance of an IVA after one year and would that be cheaper than paying the agreed amount for the remaining four years? Also, could I be asked to pay more than the agreed amount if I am in a position to settle early?

[MelanieGiles]

Hi dave.dd and welcome the forum

An early settlement in your case might be an option worth considering, in conjunction with your IP, but where would you get the money from?

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[hara]

I am also thinking of asking for a full and final settlement after a year.

My ip is GT.

I have 4th year Mortgage clause.

I may be able get money from my two sons also from sellig house and down sizing.

The reason I want to conclude IVA early is I have two young Children from my present marriage,if iva runs full ourse I may not be able to fund their college education.

This way I may be able to save for their education.

Children are young and they have not had a holiday in a few years.

I have not had a holiday for a number of years.

Originally we come from INDIA and because of debts My wife, children and I have not been able to visit close relatives for few years.

I am coming to etirement in a few years and would find it very difficult to keep increased mortgage payments if IVA runs for 5 years.

There will not be much life left post IVA for us.

I have strugled with debt for a number of years and it has been very stressful and depressing.

Also the clause of 4th year remortgage says,that IVA may conclude after remortgage taking in to account increased mortgage payment.In effect IVA may be running for 4 years only.

If I am able to sell my house and, or raise money from other source is their a realistic chance of full and final settlement for the reasons given.

Hara.

[MelanieGiles]

This is definately possible Hara, but you will need to discuss the potential offer you can make with your IP and let them know why you wish to make it. Creditors may be sympathetic, but at the end of the day will still need to see that you are putting your best foot forward so far as they are concerned, and the lack of money to fund family holidays or further education is unlikely to be received favourably, but the fact that you are nearing retirement and concerned about the future - hence the decision to downsize - appears to be a good reason to mention.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[hara]

Great many thanks,Mrs.Giles.

As always you and Mr.Davies are very helpful.

If not Holidays,even visiting relatives for my wife and children is difficult.My wife's mother is not very well and she can not go if she has go urgently.

I have suffered from work related stress in the past and debt I had did not help.Now if I am going to be tied to IVA for 5 years it would cause stess and also debt in the past and IVA running for 5 years is goig to cause increased tension in my relationship with my wife.

Hara

[iva experts]

Hello Hara, I would definitley speak with your I.P to discuss the possibility of offering your creditors a Full and Final Settlement. They will be able to advise you what a good offer is etc. Best of Luck !

Best Regards. IVA Experts

[Sadsack]

Hi Hara

I too am in a similar position where I am in the process of trying to end my IVA early by remortgaging my property. I do find that being in an IVA is very difficult, not having enough money every month to cover what I would call "basic" things.

The other concern I have is that my Mum lives 7,000 miles from me and is elderly. Should, God forbid, anything happen, I, in my present situation, would have no means of funding a flight to see her.

So heres to keeping fingers and toes crossed that things work out for you - and for me.

Take care

Sue

Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/

[finebridge]

Hi davedd & Haa,

Sound advice given by the experts. Please do contact your IP's and arrange a meeting of creditors to offer early settlement.

Good luck and please keep us posted how you get on.

Kind Regards

Nicola

Finebridge Ltd
22 Laud Street, Croydon, CR0 1SU
0800 180 4212
www.finebridge.co.uk

[hara]

My favourable mortgage rate comes to an end in march.

I have had a chat on telephone with my contact at GT.
mentioned about my age and other concerns that I have letting my IVA run for full course.

Mentioned about a full and final in about 12 months raising money by, a combination, of help from two of sons from previous marriage,either remortgaging for 100% or more or selling and downsizing.

He said if that is what I wanted to do they can put it to creditors,that is very encouraging.

Apart from my age I am also thinking of my death, in case if it is to occur while I am in IVA.That would be devastating as my wife and children would be left with nothing.I am trying to get some more insurance,but the premium would be high, because of my age.

Hopefully i shall be able to get a full and final settlement in about 2 to 18 months.

hara