If you have access to a lump sum, it may be possible to carry out an IVA with just one full and final payment.

Using the IVA process, your creditors receive the agreed settlement as a one off amount. The IVA is then completed and all outstanding debt is written off immediately leaving you debt free.

Where to start

• Choose the solution – Use the “Which way should I turn” form to get your FREE DEBT REPORT
• Ask the experts – use the Beat My Debt Forum
• Call us now – speak to one of our advisors in confidence to see if an IVA can work for you.

Take the first step to beating your debt NOW – Call us free on 0800 077 6180

The benefits of a full and final settlement IVA

• IVA completed immediately – As soon as the lump sum is paid, the IVA is closed and you are left to get on with your life debt free.

• More debt written off – Because your creditors receive their payment up front, they will normally agree to receive slightly less than a traditional sixty month payment IVA. 

• No ongoing financial reviews – Once a full and final IVA has been paid, the arrangement comes to an end. Creditors can no longer demand increased payments if your financial circumstances then improve over the next five years and beyond.

How much would I have to pay to settle my IVA?

The amount you will have to pay to put in place a full and final settlement IVA will depend on the amount that you owe.

When making the proposal to your creditors, your insolvency practitioner will normally consider the amount that you would be required to pay using a normal 60 month payment plan.

Normally the total lump sum would be less than this in light of the fact that the risk to your creditors is reduced as they are receiving payment in one go.

Where does the lump sum come from?

A cash lump sum can be generated from a number of sources:

• Property equity released by remortgaging
• A windfall such as a redundancy payment
• A gift or loan from family or friends

If you have borrowed the lump sum you will need to make sure you can afford to make the repayments required.

Bear in mind that you will no longer have any unsecured debts and so the monthly payments to these creditors will stop.

Can I settle if I have already started a normal IVA?

If you have already started a normal monthly payments IVA, you can make an offer of early settlement to your creditors at any time.

This may be possible if the value of your house has unexpectedly increased or friends or family agree to help you raise the required lump sum.

In these circumstances, your IVA will be closed and you will stop making your normal monthly payments.

Your creditors can not ask you pay a lump sum and continue to make monthly payments as your disposable income will be required to repay the amount you have borrowed.