Paying Off Your IVA Early

Early IVA Settlement Options

You can pay off your IVA early using:

• Inheritance: After covering funeral costs, use proceeds for full and final settlement
• Property sale: Sell your home voluntarily, use proceeds to settle IVA
• Lottery/windfall: Large unexpected payments can settle the IVA
• Third-party payment: Friend/family member pays lump sum on your behalf
• Remortgage: Release equity early to settle (if you have significant equity)

How Much to Offer

Full and final settlements typically require offering what you would have paid over the remaining IVA term, plus any equity release. For example, with 3 years left at £200/month (£7,200) plus £20,000 equity release = offer around £27,200.

Creditors may accept slightly less as they receive money immediately rather than waiting years. Your IP negotiates on your behalf.

Benefits of Early Settlement

• IVA removed from credit file immediately (not 6 years from start)
• Freedom from monthly payments and restrictions
• Can apply for credit again
• Peace of mind completing the arrangement