A Lump Sum IVA is an IVA application where all the debts are paid off via a lump sum contribution. In these cases the IVA can take just a few months to complete.
Anyone who meets the criteria for an IVA and can offer a lump sum contribution. The lump sum could come from releasing equity from your property or from a third party such as a friend or family member.
IVA Criteria
What if I do not have enough equity to clear my debt?
Even if your debt is much more than your available equity, you may be able to get your creditors to wipe off some of your debts and accept your equity release as a full and final settlement through the lump sum IVA. Here you would get your creditors to accept just a percentage of the debt and legally wipe off the remaining balance. The lump sum IVA differs from a normal IVA as it can be done via just 1 payment instead of 60 monthly payments.
The lump sum should generally be at least 25% of the total debts.
1: Contact us on 0800 043 0200 or fill out our Application Form and we will call you.
2: Tell us about you and your partner's circumstances, debts, income, living costs etc
3: We will then discuss your options.
4: If a Joint IVA is appropriate for your circumstances we can start working on your case.
5: We will draft your IVA proposal and send it to you for your review and signature.
6: We contact your creditors with your IVA proposal and ask them to accept it.
7: Upon acceptance you will start making your payments as agreed in your proposal.
8: Upon successful completion
A fee is only payable where further services are requested. All fees will be explained in detail and discussed prior to commencement of any service or debt repayment plan. In the IVA our fees are included in your monthly payment to your creditors so you will not have to pay anymore than you can afford. More suitable debt solutions may be offered which may result in different fees applying and we will discuss those with you during your initial consultation. Read further information. Creditors may still contact you with promotional material or to fulfil contractual obligations to you but they should deal with us in all aspects relating to the outstanding debts.
Acceptance of your IVA cannot be guaranteed but we will do our best. You must meet certain criteria which will be discussed with National Debt Relief advisors. Where we put a client forward for an IVA we believe they have an excellent chance of being accepted. Debts will only be written off where a client has made an agreed payment for a fixed period. In return the creditors agree to write off the remaining balance. Typically, our clients average debt write off is between 60-70% of the debt. What debt you have written off will depend on your individual circumstances and is subject to creditor approval and completion of the IVA. Your credit rating may be impacted for up to six years from the commencement of you IVA. Homeowners may be required to introduce equity if available.
Phonecalls: Calls from a landline are normally free. Please consult your provider if you are unsure. Calls from a mobile may be subject to charges. If you get charged just ask us to call you back for free.