IVA Settlement

An IVA (Individual Voluntary Arrangement) is usually a legally binding 60 month agreement, where the debtor agrees to pay back a set monthly amount and any remaining debt is written off on completion of the IVA term.

A Full and Final IVA, otherwise known as a 'One Off IVA' or 'Lump Sum IVA', works in a slightly different way. The IVA is proposed on the basis of offering one lump sum payment which is usually less than the total original debt. A Full and Final IVA will begin and end with this one payment, and it is legally binding on your creditors and all the remaining debt will be written off.

Your creditors are most likely to accept your IVA if it offers them a better return than bankruptcy.

Full and Final Settlement IVA Process

Your Full and Final Settlement will be put forward in an IVA proposal by your Insolvency Practitioner (I.P). In the same way as a standard IVA, a meeting with creditors will be held and they will vote about on whether to accept or reject your IVA proposal.

Your I.P may request that the settlement sum is transferred to their client account and is held until your IVA has been agreed. It is likely that a Full and Final IVA will be accepted when the debtor has a low disposable income but could provide a lump-sum say through remortgaging a property to release the equity.

All the benefits of an Individual Voluntary Arrangement (IVA) remain and there is the added attraction for your creditors in that there will probably be a reduction in the Insolvency Practitioners fees charged to your creditors, as the IP will not need to supervise your Individual Voluntary Arrangement (IVA) for the normal 5 years.

Full and Final IVA Settlement from Harrington Brooks

Harrington Brooks can offer free advice and information about how a Full and Final IVA Settlement could work for you, as well as offer a range of debt solutions. For free advice contact our IVA team on {Phone Number}.