An Individual Voluntary Agreement (IVA) is a formal, legal contract for a set period, usually five or six years.
To finish your IVA sooner and have the remainder of your debts written off, you need to talk to your IVA firm, say how much you are offering and where the money is coming from. Your creditors will need to approve this offer.
How much you should offer as a Full and Final (F&F) settlement depends on your situation and why you want to end your IVA early.
Contents
How do you settle an IVA early
This is how it works:
- you tell your IVA firm what you want to offer;
- your IVA firm puts your proposal to your creditors as a “variation” to your existing agreement, some firms charge for doing this;
- the same offer is made to all your creditors and they vote whether to accept it.
These offers take time – often a couple of months.
5 situations NOT to make an offer
You may hate the IVA, wish you had never started it, be desperate for it to end… but there are some situations in which an early settlement is not your best option.
When you are in the last year
The closer you are to the end of the IVA, the less point there is in settling it early. It can be a lot less stressful to simply sit back and make those last 7 payments.
When you mainly want your credit score to improve
This doesn’t happen after an early settlement – your credit score will not improve!
The IVA marker remains on your credit record for 6 years from the start. It doesn’t make a difference that the IVA was completed early. This happens because your credit record shows your credit history, not just your current situation.
Settling the IVA early will also not make it easier to get a new tenancy or a mortgage in most cases.Mortgages will continue to be extremely expensive while the IVA shows on your credit record for the rest of the 6 years.
When the IVA payments are too high to be affordable
Here you should be to get the payments reduced – see Help with IVAs if you can’t pay because of the cost of living. So talk to your IVA firm. Do this first – then IVA may be manageable and if you still want to settle it, it may cost less.
When you can’t afford to make any IVA payments
There are two other options that could be better for you here.
The first is to ask the IVA firm to propose to your creditors that your IVA should be completed now, not failed, “on the basis of the funds paid to date”. See this which looks at when this is a reasonable thing to ask for.
The second is to let the IVA fail and opt for another form of insolvency – a Debt Relief Order or bankruptcy. Here your debts are cleared and the money you are being offered by a relative could help you have an easier next few years. if you have other debts outside the IVA, this will also get those wiped as well.
When you have other debts outside the IVA
It may be that you are getting behind with the energy bills, rent or council tax because of the IVA payments. Here it would be better to get your IVA payments reduced and any money from a relative could be better used to clear these other important debts.
First look at what you are likely to pay at the current rate
You can’t try offering 40% and then increase it to 50% and then to 75%. Assume you can only make one offer, so get it right the first time.
The first thing is to work out how much you would pay into your IVA if you carry on making the monthly payments. So, how many months are left until your IVA finishes? If you have a house with equity, add on the 12 months that your IVA is likely to be extended for.
Then multiply your current IVA payments by that number of months.
For Example – say you are 28 months into a 5 year IVA, so there are 32 months remaining and you pay £200 a month. If you don’t have a house with more than 15% equity you will be paying in either 32 x £200 = £6,400. With equity in your house you can expect to be paying 44 x £200 = £8,800.
Then consider if you have a good reason to offer less than this
Case 1 – you are struggling with your IVA payments
In 2022 this will often be because energy bills, petrol and other prices have risen a lot. But it could be due to more individual factors such as illness, splitting up with your partner or reduced income.
Here your first thought should be to get your IVA payments reduced, or your IVA completed, see above. But if they won’t work. if your IVA is in danger of failing your creditors may be prepared to accept a lower offer to complete your IVA early.
In this case, you should stress to your IVA firm that if your settlement offer is not accepted, you are going to be unable to continue with the IVA. So your creditors have a choice between accepting your IVA settlement offer and the IVA failing.
The creditors will be interested in whether your problems could be temporary and if your IVA could realistically continue. Evidence of your circumstances may help get your offer accepted:
- a new Income & Expenditure form showing you have very little spare income because of increased bills and prices;
- a letter from your doctor or a hospital appointment letter;
- copy of recent payslips;
- a recent estate agent’s valuation showing there is little or no equity in your house can also clarify the position.
With this evidence, your creditors may agree to accept a lower full and final settlement than your remaining monthly payments.
What might be acceptable depends not just on how much there is still to pay into your IVA – the total amount of your debts is also relevant. If your IVA was only offering a low return to your creditors, then they may not agree to this being reduced much.
Case 2 – you just want the IVA ended
If you aren’t struggling, you probably have to offer close to the total of the remaining IVA payments.
Here the reasons why you want to end the agreement early don’t really matter – you may want to emigrate, retrain for a different career, move in with a new partner or just be sick of the whole thing and want to start with a clean slate.
But from your creditors’ point of view this is all pretty irrelevant: they simply have to choose between taking your offer of £x,000 now or you carrying on with the monthly payments.
So on the example given above, they would be unlikely to accept £3,000, may be prepared to take £5,000 immediately and would be very likely to accept £6,000. If there was some equity in your house, then you would probably have to offer more to get it accepted.
Case 3 – you have a windfall payment you can use
Lump sums and an inheritance need to be discussed with your IVA firm. There is normally a clause in your IVA which means that windfalls over £500 have to be paid into your IVA.
Here you don’t have a choice. This isn’t an early settlement offer because the money has to go into your IVA:
- when the amount that will be paid into your IVA is more than the total of the debts in the IVA plus the IVA fees plus statutory interest on the debts, your IVA will be completed early.
- if it isn’t large enough for that, your creditors will expect you to carry on with the normal monthly payments.
More unusually, sometimes a windfall payment doesn’t have to be paid into your IVA – this could, for example, be compensation for a personal injury. Here it is your choice what you want to do with it, so you can make an offer to settle the IVA early if you want. Or you could just let your IVA continue and keep the money.
Or it could be your partner who is getting the lump sum – that doesn’t have to go into your IVA. You could just carry on making the normal payments or you could offer to settle the IVA early, probably having to pay close to the remaining monthly payments as in Case 2.
Case 4 – your IVA firm suggests you take a loan
If you are more than halfway through, your IVA firm may say you may be able to get an “early exit loan”. You need to think carefully about this offer, as the loan may be expensive (eg about 30% interest) and it prolongs the time you are in debt.
See IVA early exit loans for details, including the alternative, cheaper ways of improving your credit record after an IVA.
IVA settlements are unpredictable
It’s impossible to say for certain whether your creditors will accept an offer. Someone with a lot of experience will sometimes be suprised when a good offer is refused. Other times surprisingly low offers are agreed.
If you don’t mind putting details of your situation on the internet, then the IVA forum may help. You can post anonymously and get replies from people who work for IVA firms or who have had an IVA.
Where is the money coming from?
Your IVA firm will want to see evidence about the source of the money you are putting forward. It won’t matter if this is coming from a relative or a friend. This could include evidence about the identity of the donor, perhaps a copy of their passport or driving licence, and proof that they have the money, such as a copy of a bank statement.
If you were just given £5,000 by your dad as a generous Christmas present, then your IVA firm will want you to pay this into your IVA and still carry on with the normal monthly payments. So it’s important to say you will only get this lump sum when your proposal to settle the IVA early is accepted.
Be careful! And check the details!
There are two situations where you have to be very careful and get the settlement agreed first:
- you must NOT take any money out of your pension until you have confirmation that your creditors have accepted your offer. If you take it out before this, it could be claimed as a windfall payment and you would still have to carry on with the IVA! See IVAs and Pensions for more information.
- if the money is going to come from selling your house, make sure you read Sell my house to end my IVA early. You need to get the settlement amount agreed BEFORE you start to sell your house.
If your IVA firm agrees to put forward your proposal, you should make sure you know the exact details of what is being proposed.
“My IVA firm won’t put my F&F offer to my creditors”
If you only have a few months to go, it’s not arguing about this. It usually takes 2-3 months to get it all organised and approved by your creditors. If you are near the end, your IVA firm is just saying it’s simpler to make the remaining payments.
Make sure you have set out in writing exactly what you are proposing and why. If your IVA firm says it can’t be done or the offer isn’t enough, ask them to explain why. Insist on having this in writing.
If you think your offer is a sensible one and your firm is being unreasonable, put in a formal complaint.
What if the offer is refused?
If your creditors reject the proposal, you have to carry on with the normal monthly payments.
You could talk to your IVA firm about whether a higher IVA settlement offer might be acceptable now. Or if you could make the same offer in another six months or a year, which will give your creditors more money as they will have had the additional payments.
If you simply can’t carry on with the payments, then it may be that your IVA has to fail. See Your option when an IVA fails for what you can do then.
Should I sell my house to end my IVA?
Lower IVA payments because of inflation
More than a third of IVAs fail
Sharon. says
I have been paying into my Iva for 3 years the current balance of the reduced agreed figure is £3300. The original total figure is over £40k. I am about to go on maternity leave so my income will decrease drastically, it will not make sense for me to go back to work until baby is in school as I have two children already. A friend can offer £2000 as a settlement figure, is this likely to be accepted if not how much?
Sara (Debt Camel) says
Do you have a house with equity?
Rose says
Hello,
I was in a 5 year IVA, starting debt around 17k with payments at 86 per month. Over the years due to pay rises etc this has increased and I was paying £436.
Equity release was due at month 54. Took my IP until month 60 to do anything about it (after me enquiring why it hasn’t happened) I went through the review process and it was deemed I could not release the funds from my property. Took IP another few months to finally come back with an answer, which we agreed 12 month extension at £450 per month. I now have 6 months left and have paid over 19000 into my IVA. Total amount will be 22600 after the last 6 months payment.
I am due a bonus from work which is a substantial amount (likely to be 4K after deductions). Am I able to offer this as a settlement payment? Is it worth it ? I am just worried that if I make a contribution from my bonus, I will have paid almost the 22k , then will pay another 6 months payments so In total I will have paid approx £25k for a debt of just over £17k. I hope I am making sense – I struggle with communication with the call centre from my IVA company. Appreciate any advice. Thank you
Sara (Debt Camel) says
With only 6 months to go, there is little point in trying to get an early settlement.
You do need to tell your IVA firm about the bonus though. You can ask them How much it would be to settle your debts completely.
Danielle says
Hi Sara, looking for some advice please. My mum has offered me 8k to settle my iva by way of full and final. I pay 150 a month and have the 12month clause despite not having equity and still none at end of 5 years. I could be facing redundancy and my wage has already decreased since taking the IVA, the current £150 is now unaffordable. I spoke to creditfix and they suggested that I make offer before they reduce payments. I sent offer in and have had the below response from creditfix.
“Kindly note that your outstanding balance is £8250.00. Since you own a property, there will be the Month 54 process that you will need to go through. The minimum amount that you can offer to the creditors is £10,350 including the £300 for the meeting, the outstanding balance and the Month 54 process. The amount of £8000 is likely to be rejected by the creditors as it is lower than the minimum amount”
I know they have to tell you that’s minimum but seeing as will settle 4years 6months early do you think its worth trying or should I see if I can be gifted more. My mental health is not good, I’m losing sleep and trying to raise a child I just want this gone.
Sara (Debt Camel) says
So you are just 6 months into the IVA?
Are the £150 a month payments unaffordable because the calculation wasn’t right at the start? Or has your mortgage or something else gone up since?
Can you say how large the debts are that went into your IVA?
Danielle says
Hi Sara,
Thank you for coming back to me.
I’m in shared ownership and since entering IVA my income has decreased by 5k a year (last month) my rent went up by £40 in April and I have car insurance to pay monthly as was yearly until June and water to pay for that I didn’t have when entering IVA. My total debt was about 47k.
Sara (Debt Camel) says
So your IVA payments made no allowance for car insurance? Npor for your rent increasing in April (which they should have known was coming?)
When does your current mortgage fix end?
Is there any equity currently in your property?
Danielle says
I think car maintenance was in there but not insurance and at the time I didn’t think because I had paid it a year upfront. When I said about rent increase the lady on the phone said we’ll you have a high sport fund so take it out of there….being new I didn’t really question it. My fix rate ends in 2years and no equity nor will there be in 5years. I only moved in September last year. Obviously now wage has gone down by 5k too.
Sara (Debt Camel) says
What is the high sport fund?
Danielle says
The allowance given for hobbies, leisure, sport, socialising, eating out, outings, leisure clubs. Its at 212pm but 180 would cover that cost as I factor sons glasses/lenses/gym/football/school clubs and I have to pay for his physio after a badly broken leg thats costing £55 every 3 weeks as nhs wait is 6months and he can’t walk! I redone my calculations and if I keep the same but add extra costs I’ll have about £90 left for IVA. Can I factor this into my full and final settlement response? My mum has said she can only offer 500more so 8500 total I gift.
Sara (Debt Camel) says
Several questions (which may sound irrelevant but aren’t)
1) when you took The IVA, was there any discussion about what would happen when your mortgage fix ended and your mortgage went up?
2) how large is your mortgage payment at the moment? What rate are you paying?
3) does your mum actually have this money in savings? She isn’t going to borrow it?
4) what were the largest debts in your IVA?
Danielle says
Morning Sara,
1) Nope nothing said/asked about this
2) Mortgage is £674 at 3.49% and then I have £674 rent on top
3) My mum has recently had an inheritance from the passing of her dad so has the funds
4) £15,000 Loan and credit cards – ranging from 5k to 10k
I have put in affordability to most and all been rejected, one went to FOS and didnt get upheld and im contesting and the rest still to be looked at. Either way will go to IVA anyway. IVA was best option to protect the house etc
I have asked Creditfix for income and expenditure form to show I dont have more than £50 disposable income now, and hoping they will put this in with settlement.
Sara (Debt Camel) says
I would stick to the 8k offer, say you want it put to your creditors – this is your right. Also say the IVA will become totally unaffordable your mortgage fix ends in month/year and you consider the IVA was missold as there was no discussion about what would happen at this point.
Sara (Debt Camel) says
Another option which you should consider (even though I am sure you will hate the sound of it) is just to stop paying the IVA and walk away from the property and go bankrupt when the IVA fails.
There is no equity. The rent will continue to rise. You won’t be able to afford the higher mortgage. If you lose the house at that point, the money settling the IVA will just have been thrown away.
It may be better to keep your mum’s money for helping you find somewhere to rent and pay the bankruptcy fees.
Danielle says
Your right I do hate this option ha!
I cannot loose my house it’s everything I’ve been working towards. To give you context my debt is purely from a gamberling addiction which thankfully I have admitted and recive counselling for, I’ve been gamble free for 8months now. I will do everything it takes to meet the payments if that means taking on night shift work etc. I just want to make the IVA stress go away and sleep better and hoping I can justify the f & f based on affordability. I do appreciate I owe alot of money.
Danielle says
Thanks Sara. I will in that case. Should I also show that I can no longer afford the £150 payments and that if offer is not accepted then my monthly payments will have to decrease? Whats the likelihood of creditfix actually giving these reasons? I am hearing they just push for all and may not make it sound appealing? Just trying to put an email together and request that these statements are made to creditors.
Sara (Debt Camel) says
Yes definitely say the current payments are no longer affordable and the alternative to this settlement offer being accepted if for the IVA to fail .
It is your right to have what you say passed to your creditors.
Danielle says
Thank you Sara, really appreciate it. I will keep you posted.
Cherrel says
Hiya,
I was wondering if anyone could Advise me. I’m almost a year into my IVA and currently have 63 payments left of £130. To totall £9,360
Due to my long term disability which has now affected my everyday life. I now have an advocate appealing my Mandatory PIP appeal. If this goes through I will be potentionall backpaid over £6000.
Do you think it would be possible to offer a sum of this to end my IVA early? Or can they use a sum of it to shorten the term time left?
Sara (Debt Camel) says
How large were the debts that went into your IVA?
Has your disability got worse since you started the IVA? Do you have any income apart from benefits?
Your IVA was 6 years long? Do you have a mortgage?
chrissy says
Hi im really stuck on this topic,im disabled ,and can not work so im on a low income,i have an IVA thats £90 per month,i only have until the end of march left,i got in touch with ebangate,and they said that i would have to pay £1000-£1500 to end to IVA early,i do not have these funds,and my family could only afford the 6 x £90 ,could somebody please offer advise on what would be a fair payment,i dont want to fail the IVA at this late stage,but with the cost of living the way it is,i dont know what to do for the best.
Thank You
Sara (Debt Camel) says
Are your current payments unaffordable?
Are you buying or renting?
chrissie says
Hi Sara,
Im renting (private) and with the cost of living shooting through the roof and my condition getting worse,it does make them more difficult to pay.
Sara (Debt Camel) says
The simplest thing may be for your family to give you £90 a month to let you make the normal payments. It takes several months to get a settlement offer agreed, so by then your IVA will nearly be at an end.
The alternative is for you to go back to Ebenegate and ask for your payments to be reduced. They may well be able to reduce them a bit, see https://debtcamel.co.uk/help-ivas-cost-of-living/
Chrissie says
thank you,i will keep you imformed
Catherine says
Hi Sara,
I’m 13 months in to my IVA and by the end of this year will be in a position to offer around £5000 to settle. My total paid is 1950 at this time and I have around 7,000 left. Is this likely to be accepted? Total debt was approx £23,00. I also wonder if you can help me re whether I need to still declare this when applying for a tenancy as adverse credit as it would be completed? Or whether the fact is says completed on my credit check will be enough?
Thanks
Sara (Debt Camel) says
Where will the 5k come from?
You will still find it very hard to get a private tenancy without a guarantor until the IVA drops off your credit record 6 years from the start. The fact it is completed doesn’t seem to help much.
Catherine says
Hello, my boyfriend will give me the 5k as he knows how much an issue this IVA is.
I have a guarantor etc but recently turned down for a property because the Landlord said no to my IVA, will it still be declared as an IVA or will it be referred to as settled and no longer seen as ‘adverse credit’ if that makes sense? I’m aware it will be on there for a number of years yet but just wondered if it’s still classed as adverse credit.
Thanks
Sara (Debt Camel) says
Landlords typically can only see public information such as insolvency (bankruptcy, IVA, DRO) and CCJs – unless they ask you to supply a credit report. The IVA will stay on the public information section for 6 years but show as completed. Some landlords may be happy with that but many will reject any insolvency markers, finished or not.
So you should not assume that settling the IVA will solve new tenancy problems.
Are the IVA payments a struggle at the moment?
Catherine says
Hello,
Thanks for your response. They aren’t a struggle at all but I’m eager to have it completed so I can move on as it’s from a previous marriage and has been a bone of contention since.
I just want to begin repairing my credit file as I’ve read it’s easier to do once you have it completed or settled.
Sara (Debt Camel) says
Have you had an annual review?
AGB says
Hi Sara,
My partner is just over two and a half years into a 5 year IVA. Her monthly payments are roughly £110 and the amount of debt at the starting point of the plan was just under 7k, with approximately 3.5k remaining on the balance as of now. She has no trouble keeping up with the payments and has had two annuaI reviews in February of 2022 and 2023.
I want to pay off the remaining debt on the IVA for her, as in the long term we hope to move in together and while this won’t affect the presence of the IVA on her record for 6 years it will assist in her general financial stability for it to be completed.
Given that we are past the halfway point and considering inflation plus the company she is with recently raising their admin fees for creditors, what offer is likely to be accepted on the remaining balance of 3.5k? Most articles I have read suggest an offer between 2/3 and 3/4 of the remaining balance, which would work out somewhere between £2300 and £2600 in this case.
Many thanks
Sara (Debt Camel) says
It is a bit random what may be accepted in early settlement. Inflation is really relevant unless she can argue that she is struggling to make the payments.
Barack says
Hi ,
I’m on IVA to go 32 month but I had accident abroad had fractured of my ankle. I’m at with my family and they Look after me can not go back to UK. The Dr said it will be in cast nearly 2 months.
I’m thinking to do early settlement agreement with offer.
I will be gifted money from my parents.
28 months left to be end up.
Can you help me about this any suggestions would be more helpful
How much do I need to be offered and how long does it take.
My monthly payment is 383
Regards
Sara (Debt Camel) says
Will you ever return to the UK?
Do you have any assets in the UK?
Barack says
Yes I will come back to UK , just wanted pay off remain balance with reasonable offer.
If I have any chance to do it with my doctors reports.
Also it will be extra stressfully when I’m away from UK to controlling bills.
Don’t have any assets .
Regards
Sara (Debt Camel) says
So being unable to make payments for a few months is a reasonfor your IVA firm to give you a payment break.
The normal offer would be 32 x 383 so just over £12000. They may accept 10k now in preference to a delay?
But if you want to settle for. Lot less you will have to argue how the 383 was unaffordable before your accident (was it?) or have medical report on how it will take a lot longer than 2 months, probably over a year, to be able to work again.
Barack says
Hi ,
It’s actually 28 month left to end 383×28 £10724 left to be paid. If I can offer around 8k do they accept or not with my current situation. Also 8k will be given by my parents.
If I have email to them what they might ask to be process reason why I’m not in UK just wanted to be clear this. ( it will be extra stress me every month with current situation)
Regards
Sara (Debt Camel) says
I don’t know – decisions on early settlement can be erratic- but 8k seems worth a try.
When you email Them with the offer, you need to say you are out of the UK, can’t work for at least 2 months because of health (attach doctor note) and ask for a payment break while settlement offer is being decided.
Theresa says
Hi,
I’m 23 months into my 5 year IVA and would like to offer an early settlement amount. My original debt was £31000 and I currently pay £330 a month towards the IVA.
If i made them an offer of £12000 do you think they would accept? I have a family member who is willing to pay this for me as my mental and physical health is getting worse due to my fibromyalgia and COPD and I’m not sure how much longer I can continue working.
I’m coming up to my second annual review and would like to make this offer before then.
Sara (Debt Camel) says
are you renting or buying?
did you have any assets such as a car worth over 2000?
Andy says
Hi, I entered a Iva nearly two years ago and my original dept was 14k, I pay maintenance and recently paid 1400 from a tax rebate my mother has offered to give me 4000 to make a full and final payment because of a serious medical condition, will they except? Andy.
Sara (Debt Camel) says
what are your monthly payments?
do you have a house with equity? or a car worth over 2000?
do your health problems mean you need to give up work?
Ryab says
Hi,
I am currently 33 months into an IVA i started at the beginning of 2019, total debts approx 34k nearly 30k to one creditor, i have been making payments varying from £370 up to £450 a month. I have had payment breaks for various reasons including partner out of work and a new baby arriving which is why i still have so long to go, up to now i have paid in £10,442.48.
My question is i am currently paying £215 per month due to childcare costs and i was wondering what could be a reasonable offer to the creditors to end my IVA in full and final settlement? A family member is willing to gift me the money but obviuosley there is a limit to the amount they can gift so any idea of the amount to offer would be appreciated. I believe at the last variation the realisation for the creditors was around 17k.
Thanks
Sara (Debt Camel) says
Are you renting? How many months to go?
Who is the creditor with such a large proportion of the debt?
Ryan says
Hi Sara,
Yes I am renting and have no assets, Car worth less than £1500. I have 27 Months left to go it finishes Jan 2026, the Creditor with the large proportion was Halifax Bank but the debt changed and is under a Company Watch Management Portfolio (not sure if this is part of Halifax).
Thanks
Sara (Debt Camel) says
What a shame you didn’t go bankrupt – this would all have been over by now.
So the full amount of the remaining payments is about £5,800.
How affordable are the current payments?
Ryan says
Honestly gutted I didn’t go Bankrupt 😥, when discussing it Bankruptcy should have been pushed but it was the stigma behind it. I was told i would never get a house or anymore credit in the future (I know better now) but that was the reason I didn’t.
The current payments are affordable but due to it being nearly 5 years since I started the IVA I just want to get out of it as quickly as possible and move on, which is why I’m trying to figure out if a settlement offer would work and what would be a acceptable offer to get me out. Obviously the person gifting can only give so much.
Thanks
Sara (Debt Camel) says
if the current payments are affordable, the creditors may not accept a lot less than the full amount of the remaining payments. I am sorry but there is no easy way to guess what would be acceptable. You could try 5k
Ryan says
Thanks again for your reply Sara.
In truth wasn’t thinking about offering less was more thinking about offering the 6k which they would realise with my payments over the remainder but was trying to understand if they would push for loads more as might be able to go to 8k max but didn’t want to waste my time if they were going to say we want 10k or more.
Thanks
Sara (Debt Camel) says
Oh don’t offer more! Why would you? Your relative can stick the money in a savings account getting interest and just give you the payments each month.
Charles says
Hi Sara
I’m in iva and I have 23 months of payments left plus 12months has I have a mortgage
My wife was found with MS and she is getting trouble to work and for the future.
Can I have a advice wich offer I can do for early settlement agreement?
I will not know if I will keep up with the payments due to her illness as the prices keep going up as mortgage.
I have 5 months @x 408 plus 18months @x887
Plus the extra 12months
Can I have your opinion please
Sara (Debt Camel) says
Very sorry to hear about your wife.
When was your last IVA review? Has your mortgage increased since then or do you have a fix ending soon?
How large were the debts that went into your IVA? Is this joint with your wife?
Laurence says
Hello. My wife and I are in an IVA. We only have left 28 monthly instalments of 170£ left to do. I recently started uni and I will get maintenance loan and tuition loan. The maintenance loan i will be able to use how I like. Is it possible for me to offer the money I’m getting from maintenance loan as a final offer ? I spoke with the IVA company. For a final offer they will want around 4800£. I plan to give them 5000£ just so I can get out of IVA.
Do I have any chance at succeeding with this?
Sara (Debt Camel) says
How will you manage if you spend all the maintenance loan on this? Why not just some of it to pay the monthly payments?
Laurence says
I work and will be just one instalments of three that will go towards final offer for IVA. I will receive another 2 next year. January and April.
Sara (Debt Camel) says
Well you can try. But the IVA firm may think you can clearly pay more…
Laurentiu says
What will be a good amount of money I could offer them so that I know I can get accepted.?
Debt was 13k. Already paid 5500£. No assets, car is on finance, I’m renting.
Sara (Debt Camel) says
I’m sorry I really can’t predict this. It may be simpler to just carry on paying. You don’t have to take out this maintenance loan – it’s not a good idea to effectively be borrowing money to clear an IVA
Laurence says
Thing is this maintenance loan I’m still going to receive it. It’s part of my student finance package. And I will need to repay it if I go over 27K a year after I finish uni.
Sara (Debt Camel) says
You should be able to not take the maintenance loan if you want. I am not recommending this, just saying it is an option.
I don’t know if this is going to be a problem for your IVA. Not if an early settlement offer will be accepted.
Laurence says
Thing is I don’t know if they will accept the offer based on the fact that it is a maintenance loan and not a gift let’s say from a family member or friend.
Sara (Debt Camel) says
And I don’t know either.
Laurence says
I will give them a call and see what they have to say about it. I do know they want me to pay it in the IVA because of that windfall clause. They see it as an extra income.
Sara (Debt Camel) says
Well it isn’t. It is a loan.
Also if they are treating this as extra windfall income that you cannot use it to make a settlement offer.
Laurence says
Now this why I don’t understand. I know it’s a loan which I will have to pay it back at some point. Why do they think it’s an extra income ? Is it legal what they are doing it ?
Sara (Debt Camel) says
You needs to go back and argue with your IVA firm about this. Until you are clear what they are saying and why, you can’t make decisions about that to do. Point out that you can refuse to take a maintenance loan
Kirsty says
My IVA was set up for 6yrs, 6yrs is up next July and they’ve added another year as I’ve equity in my property that I can’t release – so would be 7yrs in total. I want out of the IVA for career reasons. Debt Movement has suggested if I was to be gifted the remaining payments plus 12 extra months in lieu of equity it can be put to my creditors. The amounts they’re quoting are currently £1056 remaining IVA plus £1584 equity payments. My mother is willing to gift me this to release me. Is there any particular wording to use in correspondence and from experience, what is the likelihood of acceptance – or anything that can be done to increase the chance of them accepting the offer? thanks
Sara (Debt Camel) says
are the current payments affordable?
Kirsty says
Hi, yes but I want and need rid and want to avoid having to pay a seventh year if there’s any possibility of settling early.
Sara (Debt Camel) says
Sure, I asked because not being able to afford the current payments would have been a strong point in what your creditors should accept the settlement offer.
Do you have a mortgage fix ending soon?
Kirsty says
Yea, coincidentally my fixed term on my mortgage is due to end at the end of June. One of my arguments to get the ‘Select Partnership’ to get them back down on pushing additional debt on me with the equity release/secured loans was this and the fact I’m anticipating at least a £100-150 rise in payments (if interests rates don’t drop) and can’t afford additional debt or borrowing after that.
Sara (Debt Camel) says
ok! so that is the reason your mum is offering this money – because you won’t be able to afford the IVA payments from next June – mention this in the offer letter.
Kirsty says
Perfect, thank you :)
Kirsty says
Hi again, just wanted to check in to see whether anyone was encountering issues with DebtMovement taking excessively long to look at the early settlement? May will be 5 months since I submitted the request and their updates when chased in terms of turnaround are useless, despite me expressing the time pressure with my fixed term on my mortgage ending coming up.
When they offered me a loan via Frog loans a few years ago which went through the same process, it look a matter of weeks, anyone have any intel on why this process (which is essentially the same) is taking considerably longer? Assuming they also get commission on any successful loan applications done via them which may have helped speed things along that time!
Many thanks
Sara (Debt Camel) says
One person managed to get DM to speed up with her issue by leaving them a 1 star review on trustpilot. They contacted her immediately!
Kirsty says
Hi again,
So MONTHS later they’ve STILL not responded to my multiple emails, messages and it’s impossible to get them on the phone. Is anyone else struggling with Debt Movement? I’ve tried Trustpilot as well as complaints emails to no avail. I sent my info to try and close early in November!
Sara (Debt Camel) says
Do you know who your insolvency practitioner is?
Kirsty says
Hi, the last named person on any correspondence was a Laura Prescott.
Sara (Debt Camel) says
send them a formal complaint (an email with COMPLAINT as the title). Say you would like to know who your IP is as you understand Laura Prescott no longer works for them
Kate says
My husband has 9 months of his IVA left at £387 payment a month. The term is 6 years so he has 9x £387 which is balance of £3,483. Would the Trust Deed company accept this amount if it was offered as early settlement figure as our daughter has offered to help pay it as I may need to give up my job due to my mental health and all we would have coming in would be my husband’s wage?
Sara (Debt Camel) says
Is there a clause saying he may need to release equity in the last year?
Kate says
I don’t think so it was originally a 4 year term but they made it 6 years as we had some equity in our house at the time of taking this IVA out.
Sara (Debt Camel) says
so this will make a big difference. If there is an “equity release” clause in there, the Trust Deed firm may want a 7th year of payments… does he have his paperwork from the TD?
would your doctor write a letter to say you need to stop work because of your mental health?
Kate says
Surely they can’t do that if he has signed an agreement of the 6 years. Yes my doctor would give me a letter. Or would it be best to just carry on paying the agreed payment till it’s finished?
Sara (Debt Camel) says
Surely they can’t do that if he has signed an agreement of the 6 years.
That is what I am asking if there is an equity release clause in what he has signed. If there is, it typically says that there should be an equity release or the TD will be extended by a year. He could phone up the firm and ask if he is unsure or cant find the paperwork. You may be right and this may not be an issue.
One option is to make this offer from your daughter.
Another one is to just use the money from your daughter to make the normal payments.
Another is to give up work and tell the TD you had to, give the letter from your doctor and ask for his payments to be reduced or for the TD to be ended now, not failed.
If you are SURE your daughter can afford the money, then the second option – just using the money to make the payments – may be the least stressful.
Kate says
Thank you Sara, I will look out the paperwork and check it and hopefully it is as I said. I think second option may be the best and my daughter has agreed to pay it for us and let it finish after all it’s only 9 months and like you said on some of your posts it’s taking months to get settlement figures anyway. Thank you you have been so helpful.
Shahadat says
Hi
I have a IVA for six years . I am on five years now, and i have 18 instalment left to pay . The amount will be £2000 left to pay.
Can i pay off this. Money will be come from my family member. I need to finish this because of build up my credit score.
Thank you
Shahadat
Sara (Debt Camel) says
Settling an IVA early will not improve your credit score – the IVA and the defaulted debts in the IVA will remain on your records for the rest of the 6 years since the start of the IVA.
“The amount will be £2000 left to pay.”
That assumes your IVA payments don’t change.
Why was your IVA 6 years? Do you have a house with equity, if so is there a clause about releasing equity in the last year of the IVA?
Shahadat says
Hi
Thanks for your reply.
My IVA repayment amount is changed because of cost of living has been considered.
Creditors wanted my six year repayment plan.
I am a private Tanent, so don’t have any property. And every year my income has reviewed by agency!
Sara (Debt Camel) says
Well you can offer the £2000.
But as I said, it will make no difference to your credit score. or the difficulty in get a new tenancy. So don’t offer any more!
Shahadat says
Thank you so much
LG says
Hi I am just over 3 years into a 6 year Iva (started nov 2020? My debts were £30,847. After over a year in I managed to up my payments to £500 a month. I have £16,500 of the plan remaining. I do have a mortgage with equity. My parents have offered to help clear the remaining debt as they have had inheritance. What is a reasonable offer to put forward to clear the remaining plan?
Thanks
Sara (Debt Camel) says
An IVA is not a fixed “plan”.
Increasing the amount you pay a month just means you pay more overall – it doesn’t reduce the amount you have to keep paying or mean the IVA ends sooner unless you repay all the debts in full plus the IVA fees.
If you are currently paying £500 a month, and you have say 38 months remaining, that would come to £19,000 remaining, not 16,500.
Also was your IVA 6 years so you would not need to release equity, or is there still an equity release clause in there?
How affordable are the £500 a month payments at the moment? Because if you could get them reduced that would mean it would be cheaper to settle the IVA.
LG says
Hi, there was an equity release clause. They have told me yesterday that I would have to add a total of twelve months onto the 16500 as there is an equity release clause. So I would need a total of 22500. I have submitted a full and final offer today of 20,000. Do you think this is a reasonable offer to put forward. It as all my third party can afford to offer
Sara (Debt Camel) says
This depends on whether the £500 is a reasonable figure. If you have received a pay increase recently then your IVA firm may feel it should be more. If the £500 was hard to manage, you could have argued to get that lower so the it would be less.
Your IVA firm will tell you if this is a reasonable number.
Your parents shouldnt stretch to pay more than they can afford – getting your IVA settled will not improve your credit rating.
Danielle says
I have 10 months left in my IVA only have this because I took time off when I was on maternity leave it should end in February this year but runs until November. I have £850 left do you think it’s worth offering them £550 and trying to settle it? Would that be accepted?
Sara (Debt Camel) says
Settling an IVA early is a real hassle as creditors have to vote on it. So it takes months. Many IVA firms add several hundred pounds to their fees to do this, so yiur creditors would get very little from this.
If the payments are too high, as for them to be cur or for your Iva to be “completed on the basis of funds paid to date”.
Danielle says
So would I be better just paying the £550 off it and then splitting the £300 over 3 months and get it done sooner that way or just letting it run as it is as I pay £85 a month. Thankyou for your reply
Sara (Debt Camel) says
Just let it run. Keep things very simple.
If you pay in a chunk now, that will NOT reduce what you have to pay for the rest of the year.
Danielle says
Okay I’ll do that. Thankyou
Liz says
Hi! I am only paying 80 pounds per month currently and have about 2 years left but am planning on leaving my job to go travelling so my mum has offered to pay a settlement figure for me to clear the IVA before I go. They have told me my current future payments stand at around 7000.00 pounds. My mother in law settled hers many years ago with around 5000.00 but she owed around 20-30k so I am just wondering if you can help me on the approximate figure my mum should propose and gift me?
Sara (Debt Camel) says
are the £80 payments affordable? how many months do you have left?
Liz says
The £80 was affordable but since I’ve left my job to go abroad now I have no income and will be volunteering abroad so won’t have one for the foreseeable. There is 15 months remaining.
Sara (Debt Camel) says
Well 15 x 80 is £1200. but it may be simpler for her just to make the monthly payments?
Ian says
Hi, I want to settle my IVA my question is I have got 23 months left on it so it works out about 3300 on my monthly payment I really want to get it finished as I in need of it to be completed As I am sick of it Hanging over me Plus my landlord Is selling up the property. We are living in the next couple of months, so I will need to be looking for a property to rent so It will look better if the IVA is close My dad is going to give them a offer for 3500 is it a good enough reason to get my IVA Finished thanks
Sara (Debt Camel) says
Are your current monthly payments affordable? Has your income increased since you last annual review?
Having a settled IVA on your credit record may not make any much difference at all to being able to get a new tenancy… it may be better for your dad to keep the money and offer it as an additional deposit on a new tenancy.
Ian says
hi yes I can afford the payment my income will be going up soon as I a self-employed worker I will be going in to a partnership with someone but at the moment the Iva is holding me back to expand my business so getting rid off the Iva would help me a lot the reason why I got in to debit is I was contract to a company which I did a lot of work for but after the contract I did not get paid for the work and then when in to bankruptcy so leaving me in debit so I was put on a Iva thank you
Sara (Debt Camel) says
Well there is no real need for your dad to offer them more than the sum of the remaining payments.
Anonymous says
I have received a back dated payment for a carers element of universal credit, this is quite a large sum of money which I was entitled to since before I started my IVA back last year, the problem is they are classing this as a windfall and want me to pay the full amount into my IVA. Will this amount be taken off what I owe?
Sara (Debt Camel) says
How large is the back payment? How large are the debts that went into your IVA?
Apart from cases allowance what is your income? Are you employed?.
Sam says
I am going through an early settlement offer at the moment, my wife kindly offered to help me pay off the outstanding balance in full so I am hopeful it will be accepted early next month when the meeting is scheduled.
I have received an informal email from a Creditfix customer service representative asking for 3 months of my bank statements to complete my review, a review has not been mentioned at all during this process and my annual review isn’t due until October, the email doesn’t state that this will affect my offer or my IVA like it usually does and I can’t see anywhere in any of my paperwork from them that this is part of the process.
Are they just fishing to try and find more charges they can add or is this a normal part of this process?
Sara (Debt Camel) says
I can’t tell if they are doing this as part of the settlement offer approval process or getting ready to close the IVA if the offer is accepted.
Do you care?
Sam says
I have been given a pay rise at the start of April in line with inflation which would appear on a statement I provided, the only reason I care is that last time I had an annual review (after they hadn’t done a review for 3 years due to a technical error on their part) they asked for £1800 as they classed a lot of my pay as overtime due to it being back payed after negotiations went on longer than they should have for the pay rise, this was added to my IVA, I’ve offered to pay the IVA in full and I’m just worried they will ask for more money so don’t want to send them my information if it isn’t necessary.
Sara (Debt Camel) says
I’ve offered to pay the IVA in full
Do you mean pay all the remaining payments if they stay the same?
Or repay all the debts in the IVA in full?
If you have had a pay rise, your IVA would normally go up, but probably you have also had increased expenses – food, petrol, council tax, mobile, broadband, water, car insurance…
Sam says
When they did the first annual review, after 3 years, they told me if I payed more every week I would pay my IVA off sooner, I agreed, they then added all the debt back on that was meant to be written off, I started with £16 k, they wrote off 35 % so I had just over £10 k to pay, after adding it back on and the charge they gave me for ‘overtime’ my IVA was for £18.5 k so I’ve made an offer to pay that full amount so it is all the debt in full.
Sara (Debt Camel) says
In this case any review isn’t going to change nothing, so just send them the statements.
But you must be near the end of the IVA? Why are you bothering to settle it early if it’s now for a fixed amount? It won’t improve your credit record.
Phoebe says
Hi Sara,
I am currently going through the “equity clause” part of my IVA with Creditfix, with it ending this September.
I originally owed £14000 and was originally expected to pay back £6500 but due to changes to my income I have so far paid £10,800.00.
My Husband will not allow the property to be remortgaged, regardless of how much the third party are trying to encourage him to do so. Presume they get a cut of this amount.
I have been advised I will have a balance of approx. £6k to pay off if I do not release equity from my mortgage. (I’m unable to settle early at the moment during this time due to equity clause)
Can this £6k be possible? I’m struggling to understand.
I pay £350 a month, I have 5 months left and then if it went into a 6th year, it would be another 12 months so as a settlement figure I’d be expecting more along the lines of £2.5k?
Any help or advice is appreciated.
Many Thanks,
Phoebe
Sara (Debt Camel) says
how affordable is the £350 a month? do you have a fixed rate mortgage, if so when does the fix end?
Phoebe says
Thanks for replying.
£350 is ok at the moment.
We have a fixed rate 2% until September 2025
Sara (Debt Camel) says
so after the mortgage goes up, would you be able to afford £350? or a lot lot less?
Phoebe says
Yes I’d be able to afford £350 once our mortgage rate changes.
My husband would never agree to remortgage so our option would be 2nd charge or nothing.
Sara (Debt Camel) says
that is surprising – how much will your mortgage be going up? To be clear – being in difficulty when your mortgage rate goes up is a very good reason to not be able to afford a secured loan and to only pay another 12 months of IVA payments instead.
Your husband also has to agree to a secured loan.
Nas says
Hi, I have 9 months to pay my iva left of £300. I may also be made redundant in the next couple of months. Should I pay off early so I don’t have to pay with my redundancy amount? I am getting over £12k I’m worried they will use most of that that’s left outstanding can they do that?
Sara (Debt Camel) says
How easy will it be to find another job?
It’s pretty hard to get an iva settlement through quickly.
Leslie R craig Jones says
Hi,
I have been in my IVA for just under 5 years and have 28 months left (i am in a 7 year IVA).
It’s crippling me monthly and ruining my life.
I have a friend who is willing to loan me the the full remaining amount of nearly £7000 and pay him back over a longer period of time.
If I offer the full amount to my creditors with this circumstance, would it be accepted?
I just want out also.
Many thanks ks in advance.
Craig
Sara (Debt Camel) says
Why is your IVA 7 years long? Do you own a property?
Are the payments unaffordable because your expenses have gone up so much? Have your payments increased during the IVA?
Dene says
Hi,
I have a 6 year IVA – This IVA was originally for £36200. £14200 of this was a joint loan with my wife(who is not included in the IVA) so therefore still needed paying. This has now been paid in full only a few months into my IVA. So therfore I owed a total of £22000 plus £3500 in fees. I have never missed a payment and paid £264 per month for the past 3 years. In total £9504 has been paid as agreed. However I have a large amount of money coming my way in the next few months so have asked to settle my IVA early. I owe another £9504 by way of payments. Or offer to pay the IVA in full to ensure my creditors revieve ALL of the money I originally owed. Which is £11500 plus fees.. I have been told today my settlement figure would be £20200 – this will mean I have paid £43904 into my IVA when my total debt was £36200. Surely this can’t be correct.
Sara (Debt Camel) says
£just under £8000 in fees is steep but not impossible. Have you asked them for a breakdown of the fees?
I assume this money is definitely coming to you at that date? How much?
Dene says
Yes I’ve asked for a breakdown and it’s 7.2k in fees – if I continue with the IVA foe the next 3 years I will pay another 9.5k. If I try to pay everything I owe I will be charges 20k. So an extra 10k for trying to do the right thing. Os it worth contacting my creditors directly and leaving the IVA asap?
Sara (Debt Camel) says
If you have this money coming in, you have to inform your IVA firm, it’s a breach of the IVA not to.
Leaving an IVA is not a quick process as the IVA firm has to close the IVA down after you have missed several payments. Now you have told them you have a lump sum coming, they are unlikely to just let this fail – this is one of rare situation where a firm may consider making you bankrupt.
Dene says
The lump sum coming is from a personal injury wher I’ve been left 20% disabled for the rest of my life and frok what I understand not considered a wind fall and payable to the IVA. I was just happy to pay up in full .. but now it’ll cost me an extra 10k ill just carry on with the payments.
Sara (Debt Camel) says
If it doesnt have to be paid in, there is zero advantage in you choosing to do so – your credit record will remain very bad fro the rest of the six years even if you settle the IVA debts in full.
You can make a settlement offer for sum of the remaining payments if you want, being clear that as you are not obliged to pay this money in you will not be paying the debts in full and that if the settlement offer is not accepted, you will just continue with the monthly payments.
Dene says
Ok thank you for your advice .. greatly appreciated- I will just carry on the payments for the next 3 years as normal.
DeeDee says
Hi my IVA was due to complete in July 2024 I haven’t paid anything for approx a year my Iva firm have said it could fail, do you know what my best option could be? Thanks
Sara (Debt Camel) says
Why haven’t you paid?
Have you asked or the IVA payments to be decreased if they were too high to manage?
A says
Hi Sarah,
I currently have an IVA with Creditfix and I have 6 months left.
I’ve currently received an increase in income, but my living costs have also increased. My original income was around £1,800 and is now £2,200 odd.
I’ve recently submitted a review, but am considering paying off the total remaining amount of £1,800 as a lump sum.
£800 of this would be my own money, coming from savings as I’ve had a change of circumstance and no longer require this. The remaining £1,000 would be a gift from family. I’m intending to offer a lump sum payment of £1,800 (The remaining debt value) to end my IVA.
I own no property and therefore have no assets. Are they likely to accept?
Thanks,
A
Sara (Debt Camel) says
With only 6 months to go this isn’t really worth it. It takes several months for an offer to be approved. And Creditfix would check on your current income and see it had gone up. Finishing the IVA early doesn’t help your credit score.
I suggest you tell Creditfix about your income increase and ALL your other expense increases, spend a bit of time thinking about all of those.
sarah says
Hi, I have been on IVA for 17 months and settled for 5 years. No assets. Started with £21500 on agreement including IVA fees. My original debt was £23500 before IVA. My husband wants to give me £10000 from his redundancy, he may be without work for a while or in a better case continue his job for less salary on a new contract. Do I have a chance to make the final offer and be accepted with 10000? What should I do? Thank you in advance for your response
Sara (Debt Camel) says
I suggest you don’t do anything so risky at the moment. Wait until your husband has a job, he may need that money for living. Then see what is left at the end and what his salary is. if he salary is lower, that is a good reason for the IVA firm to accept less as otherwise you will probably need to reduce what you pay to the IVA.
Nick says
Hello,
I’m 30 months into my 5 year IVA (half way) – My total remaining payments total around £4500 of a £9000 debt. Though my original debt was around £38,000. I currently pay £175 instead of £150 per month as I’m catching up on a couple of missed months.
My sister has offered to pay a lump sum to get me out early but naturally wants to pay the lowest amount possible. How much do you think I should offer? I’ve seen suggestions of 2/3 or 3/4 of the remaining £4500.
Thank you in advance.
Sara (Debt Camel) says
do you have a house with equity?
will the current payments be affordable if council tax, water, energy all go up in April?
Kirsty France says
I settled my IVA In October 2024 but have overpaid as per my account .
I was advised by Creditfix on 13.09.24 that the remaining balance on my account was £2340.00 so I asked can i settle it and they had a variation meeting which was accepted. Meanwhile I carried on with my usual payment and paid £130.00 on 03.10.24 whilst waiting for the outcome . I then paid the £2340.00 on 24.10.24 . I did ask if i should pay £2210.00 but was advised no I have to pay what I have offered and if there is an overpayment I will be refunded.
I have now 5 month later received my completion certificate. I emailed asking about the overpayment and was told its non refundable.
Is this legally allowed?How do they justify it as its not owed to the creditors so do they pocket it? What happens to my overpayment.
I have proof on my account that I have overpaid.
Please help me understand .
Littleone2025 says
Hello I am 2 years into my iva.
I have been told my remaining balance to pay in full is £3900.
I have recently found out i am pregnant.
This one unplanned and I am panicking about my repayments with maternity leave.
I have been offered £2700 from a friend, who has said i can offer the money as a final settlement.
I realise this is 70% of the remaining funds :( but my mat pay is awful at work and I’m really worried the iva will fail once I start maternity leave.
What are the chances of an offer of 70% being accepted?
Sara (Debt Camel) says
I can’t guess at the chance of their being accepted. Would you need to repay your friend?
Will you have any money spare when your maternity leave ends and you have to pay for childcare?
Are you buying or renting? Do you own a car?