How can I settle my IVA early?
Most IVAs run for a period of 5 years, but it is possible to end your Arrangement early by making a reasonable offer to people you owe money to through your Supervisor. There are three main ways to offer people you owe money to an early settlement:
Remortgage: As house prices have risen in recent years, there may be more equity in your property than you realise, thus making a re-mortgage a realistic way of ending your IVA early. In this case, you may be able to make a proposal to introduce equity early in full and final settlement of your IVA.
We have our very own in-house broker, DFD Mortgages, who specialise in matching clients like you, who may find it hard to get approval of a re-mortgage due to a bad credit history, to an increasing number of lenders offering competitive terms based on many factors such as income and affordability.
Sale of Property: As with a re-mortgage, there may be significantly more equity in your property than when you first entered into your IVA. Selling your home may seem drastic, but for many people it means a fresh start in life and being totally debt free. You may be able to retain a sum of equity to enable you to start over and offer the balance in full and final settlement of your IVA.
Introduction of 3rd Party Funds: Sometimes a family member or friend will offer a lump sum in order for you to make an offer of early settlement to people you owe money to via your Supervisor. This is perfectly acceptable and most people you owe money to will accept a reasonable offer presented to them in order to conclude your IVA early.
