One-off payment IVAs

One Off payment IVAs are an excellent way to clear a serious debt problem. This is particularly true when you only have sufficient funds to clear a small proportion of your debt and when a contribution based IVA is beyond your reach.

One Off payment IVAs, also referred to as Full and Final Settlement IVAs, are not very common because the circumstances needed before the One Off payment IVA can be considered appropriate are actually quite rare.

Qualifying Criteria

The qualifying circumstances for this type of IVA tend to restrict the number of cases as applicants must have access to a sufficiently large 'lump sum' to offer their creditors, yet be unable to afford monthly contributions towards their debts.

The offer being proposed also needs to be comparable to the return creditors could expect if the applicant was to be made bankrupt.

Which adds further complication to the calculation as to how much needs to be on offer through the IVA proposal before the One Off payment IVA will work.

If the lump sum on offer has to be an improvement on the return expected from bankruptcy, it can undermine the potential of surrendering equity that'd also be available through the bankruptcy process.

Third party funds

Due to the complications of the issue above, by far the most preferred way of raising funds for a One Off payment IVA is through 3rd party funds.

This is the name given to money being introduced by someone not party to the debt.

The 3rd party must be prepared to offer money, on the condition the debt is considered fully settled on transfer of the funds.

Generating the funds in this way simplifies the situation enormously and generally puts daylight between the IVA and bankruptcy returns.

Furthermore, creditors tend to like this kind of arrangement as it saves them waiting 5 years for their money.

Apply For A One Off Payment IVA

If you would like to have a chat with an IVA specialist regarding this type of IVA, please call 0800 088 7503.

There's no charge for a professional consultation, there's no obligation to act on the advice you receive and your enquiry will be held in the strictest confidence.

Alternatively, complete the form below and one of the team will contact you at your preferred time.

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In accordance with the Financial Conduct Authority's guidance, please follow this link if you would like to read a free guide about In Debt - Dealing with your creditors
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