IVA Case Studies:
Full and Final Settlements

The below are real examples of where an IVA has been bought to an early conclusing by means of an lump sum injection of capital.

Debts of £108,000 cleared with full and final settlement

Our client had an IVA approved on the basis of 60 monthly repayments of £513.

He had found himself with unsecured debt in excess of £108,000. A period of sporadic income during the recession compounded his problem and he soon found he was unable to meet the repayments on his debts as they fell due.

Only nine months into his arrangement, a family member offered £18,000 as a gift to our client with a view to helping settle his debts early.

Our IVA debt department managed to obtain the creditors' agreement to this lump sum being accepted as a full and final settlement. Our client is now in the process of being formally concluded and over 85% of his debt has been written off.

Over £100,000 of debts written off with full and final settlement

Following drastic changes to our client's personal and financial circumstances and after having his home repossessed, they had £142,000 of debt and could not see the light at the end of the tunnel.

In early 2008 through Harrington Brooks our client obtained an agreement with his creditors to pay an affordable amount of £575 per month for 5 years to settle his debts. In December 2011 a family member offered £10,000 to settle the IVA early. We approached his creditors with the offer which was duly accepted.

Our client is now successfully completed, and looking forward to an early release from his IVA and can manage his finances with a clean slate and peace of mind.

Debt Management to IVA, then full and final settlement

At 63 years of age our client was subject to a debt management plan with his creditors with the balance of his debt was reducing steadily but very slowly.

In 2010, still owing £40,000 he was referred to our IVA department who managed to obtain creditor agreement for an IVA on the basis of 60 monthly payments of £324 including a requirement to attempt a release of equity towards the end of the arrangement.

Following his retirement, our client offered £10,000 to creditors as an early settlement of his IVA, representing a share of the lump sum received from his pension. His IVA Supervisor obtained creditors consent to the offer and by doing so have agreed to write off over 76% of his debt (as compared to just 48% in the original agreement). Our client is now looking forward to his early release from his IVA enjoying his retirement debt free and with peace of mind.