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Settling IVA’s early

Published on:October 7, 2015Author:The Debt Advisor

The Debt Advisor team have again helped to achieve a great outcome for a couple who were both in Individual Voluntary Arrangements (IVA).

In 2012 the TDA team helped the couple obtain approval to inter-locking IVA proposals. Creditors approved the plan which saw them paying monthly contributions of £300 for 60 months, a total of £18,000 (which were subject to annual reviews).  Creditors expected to receive 23% of their debt back through the IVA.

Creditors have just received their final payout of 26p in the £. The couple were 3 years through the 5 year IVA and were keen to start a family but were worried that reduced income would end up with the IVA being extended. Creditors agreed a variation to bring their IVA to an early conclusion based on the introduction of a sum of money from a family member. Creditors were pleased with the outcome as the payout was better than expected and the couple can now move on with their plans to start a family. Their story is detailed below.

My partner and I signed up to an IVA over three years ago and maintained our payments without any issues. However, after discussing our future plans, we realised that we were quite restricted in terms of family planning as we had at least another two years (as part of the agreed IVA) before our finances would be in order.

I contacted Karen Francis at The Debt Advisor for some advice. I explained that we were keen to start trying for a baby soon, but the financial commitment of paying £300 per month for the IVA was restricting us from doing so, as we worried that we would fall behind with payments when my wage was reduced due to maternity benefits. This, to us, meant that we would have to hold off trying for a baby until the term of the IVA was over.

Karen Francis gave some excellent advice on the options that we had available, reviewing our situation carefully. After discussions, we were able to arrange with my father a  financial gift that would allow us to potentially settle the IVA early, meaning we might be able to begin family planning sooner.

Throughout the entire Early Settlement Process, Karen gave regular and constructive advice, ensuring that our paperwork and settlement offer was of a suitable standard to present to our creditors. She happily answered any questions or concerns that we had and guided us through the process with both a professional and friendly manner, totally putting our minds at ease.

Within a few short months, our settlement was agreed and full payment made. Karen worked swiftly and efficiently to ensure this was the case.

We cannot thank Karen enough for helping us with early settlement. I am happy to say that family planning is now our priority, something that would not be possible for some time if it were not for Karen’s support and efficiency.

It’s always great to hear that we have helped clients achieve a good outcome not just for themselves but for their creditors as well. We have a great team at TDA and Karen is a great example. She exceeded both the client’s and creditors’ expectations.

We put ‘Doing the Right Thing’ at the heart of everything that we do and testimonials like these show that our efforts are not wasted.

If you would like to find out more about the range of debt solutions that are available to you, call us today on 0800 0851 825 or use our contact form. Our advisors can speak with you about all available debt solutions such as Debt ManagementIVAsBankruptcy and Debt Consolidation.

All debt solutions need to be carefully considered. IVA’s are formal solutions and failure to keep to the terms can result in your IVA failing and you could end up bankrupt.

There is also free debt help and advice available through a variety of debt charities. For more information, we recommend you visit www.moneyadviceservice.org.uk.

The Debt Advisor is authorised and regulated by The Financial Conduct Authority (reg no: 606669). We are also a member of the Debt Resolution Forum and we adhere to their codes and standards.