IVA Questions & Answers
Q : Can I end my IVA early?
A :
Under the terms of an IVA, you are contracted by law to make repayments to your creditors for a period of up to five years, after which the debts that you have to them are written off and you are free from their burden. However, there are some cases in which you would be able to end the IVA early than expected and these can be more thoroughly discussed with your Insolvency Practitioner when setting up and IVA or as and when your circumstances change.
If you are lucky enough to be delivered an unexpected windfall such an inheritance or lottery win, it is expected that you will disclose this to your IP and the creditors. Provision will need to be made for most if not all of the windfall to be taken into the IVA account and shared out amongst your creditors. If there is anything left, this will be repaid to you after the IVA is complete.
In some circumstances, when a relative or friend is willing to give or loan you a lump sum, it may be possible for your IP to offer your creditors an early settlement payment at a new meeting of the creditors. If the amount is not insulting, they will often take it as they are likely to get more and sooner this way than waiting for the trickle effect of the IVA to occur.
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