A full and final IVA is a type of IVA that is completed with a single lump sum payment rather than the more common series of payments spread over 60 months. In a full and final IVA you ask your creditors to accept a lump sum that is lower than the amount you owe with your creditors in return agreeing to write off any remaining unpaid debt.
A single payment IVA can be proposed when you have access to a lump sum but do not have any regular income that could contribute to monthly IVA payments. For a regular IVA to be accepted you need to be able to prove that you will be able to keep up with the payments. If you are unable to do this then in limited circumstances a lump sum IVA may be more appropriate. Cases where a single payment IVA could be used are if you have retired or if you are planning to live abroad. Typically the lump sum will be from remortgaging or an inheritance.
The offer of a lump sum can be made at the initial IVA proposal stage or at any point during an already ongoing IVA. If you are already in an IVA then to arrange a single payment IVA you will need to speak to your IVA supervisor. Your supervisor will put the new proposal to your creditors. As with a regular IVA you will need at least 75% of your creditors to agree to the proposal for it to proceed. In this case the IVA will simply be brought to an early conclusion.
A full and final individual voluntary arrangement ends as soon as the lump sum has been paid. However a record of the IVA having existed will still be placed on your personal credit file and will remain there for 6 years. Although this will affect your credit rating you will at least become debt free immediately and so will be able to start improving it right away.
For more information on full & final IVAs and all other debt solutions call our IVA helpline today on freephone 0800 043 5043 or alternatively complete our enquiry form. Our impartial advisors are on hand to help people throughout the UK to solve their debt problems.
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Total unsecured debt : £4000