This section will cover how you can settle your IVA early.
Let’s get right into it.
Lump Sum Payment
The first way to settle your IVA early is a lump sum payment.
The way settling IVAs work is that you offer your creditors a lump sum payment equivalent to the total unpaid amount you have left on your IVA, as opposed to monthly payments.
If your creditors accept your proposal, they’ll agree to waive off the monthly payments and accept a single large payment from you. This means an early settlement for you and an early settlement for your creditors.
If you want to get your proposal approved, you’ll have to consult with your insolvency practitioner.
Remember, your insolvency practitioner is someone who wants to help you get out of debt. Take your proposal to your practitioner and have them evaluate if they think creditors will approve it.
As for the specifics, settling IVAs before they are due is usually seen as a change to the terms of the IVA. The rules, in that regard, state that the creditors to whom you owe 75% of your total debt have to agree to the change before it becomes a part of the IVA.
Negotiations with Creditors
The next step to paying IVAs off early is to negotiate as clearly and as honestly as possible with your creditors and inform them of your situation.
Most creditors may be willing to accept large payments at once if you pitch it to them the right way.
You need to inform them of how your circumstances have changed and how you paying them back early will be mutually beneficial for both parties.
Other than that, if you happen to inherit money from a relative or a family property, you may be able to use it to pay off your agreement, even through monthly payments.
This is fairly common, as it turns out. Lots of people with debt don’t really have a clear vision of what to do with sudden inheritance money, other than using it to contribute towards their debts.
If that is indeed the case, and if you don’t have any other serious financial obligations to fulfil, you should consider pooling your inheritance money towards your agreement payments as well.
Sale of an Asset
If paying IVAs off early means a lot to you, or if you think it will benefit you in the long run, you may use money that you receive from selling an asset of yours, such as a car, or maybe even property you own to pay it off.
Paying the agreement off early will do wonders for your financial freedom, and if you’re someone who is deeply invested in the corporate world, financial freedom will be a top priority of yours.