This is the place to ask questions if you are already in an Individual Voluntary Arrangement
By Andrewcspt
#33398 Hi.
I'm 12 months into an iva and have offered a lump sum by my mother in law to offer a final payment to finish my iva. Problem is I have around 12k equity in my house. Will this be an issue and are the creditors likely to not accept my proposal?
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By Hayden
#33400 Hi Andrewcspt

It is certainly possible to settle your IVA early with a lump sum from a third party such as your Mother. The fact that you are a home owner with equity will not prevent you from doing this but will need to be taken into account.

Ultimately you will need to discuss and agree the amount of lump sum required with your IVA company as they are the ones who will have to make the offer. If they are happy it is sufficient then the offer should be agreed.

To get a good idea of the amount required you will need to take the number of months remaining in your IVA and multiply by the monthly payment you normally make. Given you are a home owner you may need to add an extra 12 months to this calculation in lieu of the equity in your property. However this is only normally required if there is equity based on 85% of the current value of the property.