Can I finish my IVA early?

Sarah J · Joined: 07 Jun 2007 Posts: 2

I have been in an IVA with ClearDebt for over 2 years now and have kept up to date with all payments but recently my parents found out about my IVA and offered to lend me the money to completely pay off all of my debts. Is this possible? If so do I have to pay back the full original amount or the dividend agreed at my creditors meeting?

If I am able to complete my IVA early how do I go about it?

DavidHoward · ClearDebt Advisor Joined: 23 Apr 2007 Posts: 3

Sarah,

First and foremost let me thank you for your commitment over the last 2 years in keeping up to date with your IVA payments.

Yes, ending your IVA early is always an option, however you have a binding an agreement with your creditors, therefore we may need to hold a “Variation meeting” depending on how much you intend to use a full and final settlement and whether it has any affect on the dividend that was agreed at the time of the Creditors Meeting.

By holding a variation meeting we allow your creditors 28 days to vote for or against our proposal, however if you are in a position to pay a lump sum now, you may find your creditors will feel it is in their best interest to accept a full a final settlement.

Creditors will only expect you to pay the amount that was agreed at the time of the Creditor Meeting, however I do not know the details of your IVA, please feel free to give me a call to discuss the matter further.

I hope this has helped.

David - ClearDebt