What is a Full & Final IVA

Written by PayPlan on 5 April 2011

If for whatever reason you have received a sum of money, no matter how small or large, you may be able to use that to pay your creditors in a Full & Final IVA.

Today I am going to explain what a Full & Final IVA is and discuss the criteria of it.

What is a Full & Final IVA?

In brief, with an IVA you make an offer to repay your creditors a percentage of the debt that you owe. For example if you owe £50,000 you would need approximately £10,500 to offer a dividend that creditors may accept.

With a Full & Final IVA, everything is done exactly the same; instead of making an offer for 60 monthly payments you will offer one payment, however your creditors may put forward modifications depending on your surplus.

You would have to submit proof of the funds that you are using for your IVA and you would need to do this on top of the other documentation that is also needed for your IVA proposals.

I have been made redundant & received a pay out.

If you have received a windfall such as a redundancy pay out then you may be able to keep a certain amount of the funds before putting the rest of them in an offer to your creditors. If you have been made redundant and have received a pay out and are still seeking new employment then it may be a possibility for you to keep some of the money that you receive in order to pay your bills and other expenses. In these circumstances, you need to make sure that you are offering a realistic amount to your creditors otherwise they could ask for the full amount. The equity clause that is in standard IVAs does not apply to a Full & Final IVA. You will make one payment only and then your IVA will be complete. However if you have substantial equity in your property then your creditors may decide to ask for this to be included.

Although you only make one payment, IVA will stay on your credit file for six years and as with all IVA’s you will still need to be regarded as insolvent.

If you are struggling with debts then please call Payplan

Free IVA Advice


Don’t forget you can also follow us on Facebook and Twitter.


Filed under Archive

This article was checked and deemed to be correct as at the above publication date, but please be aware that some things may have changed between then and now. So please don't rely on any of this information as a statement of fact, especially if the article was published some time ago.

41 thoughts on “What is a Full & Final IVA”

  • Vivienne Oxford

    November 10, 2011 at 5:23 pm

    Was reading about full and final IVA, I do not have any money to do it at the moment, but if I should ever get any, can you do it on an existing IVA and what % would we be looking at?

    Reply Report comment

    • Gemma

      November 11, 2011 at 8:50 am

      It you were on an existing IVA you could then complete early with the full and final settlement but this would depend on your circumstances as well as depend on where the funds came from. It would be difficult to give a percentage as all IVA’s work on an individual basis, so it would depend on your personal circumstances.

      Reply Report comment

  • Jo

    March 24, 2016 at 7:38 am

    We made a full and final payment with the equity from our property we sold. The entire equity went to payplan in December and as we approach April, we still haven’t recieved the outstanding amount (the equity was far greater than the debt). All the necessary paperwork has been submitted.
    Is this usual? Is it not customary for payplan to keep the client in full knowledge of what is happening to their funds?

    Reply Report comment

    • Jane Clack

      March 30, 2016 at 7:27 pm

      If you email me your name and postcode plus ID number I can look into this for you as I can get in touch with people for you to try and sort this out!

      Reply Report comment

    • Matthew Childs

      April 13, 2016 at 3:52 pm

      Hi Jo, I am also going through the same experience of what you have an no contact from Payplan since taking a huge amount of our sale of our House. Did you hear any more on this?

      Jane, Can I also also ask for an update on this as surely for the amount of money this costs we should be kept fully up-to-date

      Reply Report comment

      • Jane Clack

        April 18, 2016 at 10:38 am

        Hello
        I have passed your request to the manager of Payplan Partnership supervision and I am sure she will investigate. It does usually take a couple of months.

        Reply Report comment

      • Jane Clack

        April 19, 2016 at 1:36 pm

        I have spoken to your case officers and you were sent a breakdown last week. I believe you did 100% IVAs due to the equity in the property. They only took the equity that was necessary to pay these so perhaps your solicitors hold more funds. I did not get a reply from Jo was not able to do any investigation there.

        This is how a 100% settlement IVA works:

        The total amount that needed to be paid to your creditors consisted of 100% of each of the total debts, and an element of interest. Interest is added as per the proposals, and is calculated at the statutory interest rate of 8% per annum and is accrued daily on a pro rata basis. This takes into account the debt level reducing as distributions are made to the creditors, so the daily interest reduces over the course of the IVA. During an IVA one is only expected to pay interest on one’s debts if one is in a position to repay 100% of the debt level, and fees during the term. This is why interest is applied.

        Reply Report comment

  • Lee Shaw

    April 29, 2016 at 4:01 pm

    Hi
    I paid my Iva of in full on 26th February 2016 it’s now 29th April and I have still not received my Iva completion certificate or my completion report its been nine weeks now also my credit file should have been notified within 28 days if my final payment that my Iva has been pain in full . I should have recieved the above within 4 to 6 weeks it’s now nine weeks . I have emailed my case officer who keeps saying all my money hasn’t been distributed yet why is this . The insolvency service . Gov said I should have received everything by now and all my creditors paid of

    Reply Report comment

    • Jane Clack

      April 30, 2016 at 1:42 pm

      I have checked your file and although you have paid off the debts there are still some distributions to be made. This is quite normal. The debts are cleared so you should not be chased for any debts and an IVA remains on the credit file for 6 years whether paid off early or not. However, it will reflect that it is all paid off as soon as all creditors have received their distributions and responded as they have to. I have also passed this to your case officer and management so they can respond directly to you. I can understand your frustration that things do not appear to be moving but they are – it just can take longer than the general information on the gov.uk website.

      Reply Report comment

      • Jane Clack

        April 30, 2016 at 1:45 pm

        I have sent an email but the offices are closed until 3rd May due to the bank holiday.

        Reply Report comment

      • Lee Shaw

        April 30, 2016 at 1:52 pm

        Thank you I will wait
        Regards Lee

        Reply Report comment

      • Lee Shaw

        April 30, 2016 at 1:54 pm

        Hi Jane
        I have spoken to someone on insolvency .gov and spoke to someone and they advised me it should take no longer then 7 weeks ?
        Regards Lee

        Reply Report comment

        • Jane Clack

          May 1, 2016 at 2:34 pm

          I have passed on your concerns. I canont answer any further until I hear from them and they should be replying to you too. I have also passed on your further comments today. They may well have agreed but until the final distributions are made Payplan Partnership cannot issue the certificate. I have asked them why the final distributions have not been paid also.
          I tried to telephone the insolvency service yesterday and there was no response – they are not available until Tuesday either.

          Reply Report comment

          • Lee Shaw

            May 1, 2016 at 3:21 pm

            Thank you for your help Jane

          • Jane Clack

            May 2, 2016 at 9:18 am

            Hopefully I shall be in touch again tomorrow.

          • Jane Clack

            May 4, 2016 at 8:57 am

            Hello Lee, I have spoken to the IVA department and you were sent a letter last week re PPI which they need returning signed so they can issue the completion certificate. I have been told that this will be expedited – and I mean expedited – as soon as they receive this.

          • Lee Shaw

            May 4, 2016 at 10:30 am

            Hi Jane , they sent it Friday so it only came yesterday and returned on the same day
            Thanks Lee

          • Jane Clack

            May 4, 2016 at 11:34 am

            Lovely. Thanks – will find out if they have it. They do not usually get post until the afternoon.

          • Jane Clack

            May 4, 2016 at 2:19 pm

            They haev received it and it is being expedited as I speak!!

          • Lee Shaw

            May 4, 2016 at 3:19 pm

            Hi Jane

            What does expedited mean?

            Thanks Lee

          • Jane Clack

            May 5, 2016 at 11:13 am

            Moved quickly. Apparently it went in the post yesterday afternoon!

          • Lee Shaw

            May 5, 2016 at 11:37 am

            Hi Jane
            Think I’m being stupid what went in the put yesterday ?
            Thanks Lee

          • Jane Clack

            May 5, 2016 at 12:08 pm

            Your completion certificate!

          • Lee Shaw

            May 5, 2016 at 12:15 pm

            Thanks for your help do you work for pay plan
            Lee

          • Lee Shaw

            May 5, 2016 at 12:22 pm

            Have got it yet

          • Jane Clack

            May 5, 2016 at 8:05 pm

            It was put in the post yesterday afternoon so it won’t be there yet but will be as soon as Royal Mail gets it to you. Yes, this is the Payplan blog site and I am a money adviser with Payplan but work with marketing and PR so check this on a regular basis and work with the relevant departments to answer your questions. I still do front line money advice too.

          • Lee Shaw

            May 9, 2016 at 5:34 am

            Mornin Jane
            I have received my post today and still no letter received .
            Thanks Lee

          • Jane Clack

            May 9, 2016 at 7:54 am

            Is your email address secure as if so will ask them to email it as you are so worried.

          • Lee Shaw

            May 9, 2016 at 7:56 am

            Hi Jane

            Yes me mail address is secure

            Thanks Lee

          • Lee Shaw

            May 9, 2016 at 7:57 am

            Email address is secure I meant lthsnks Lee

          • Jane Clack

            May 9, 2016 at 8:00 am

            Have let them know. Am now out of the office for the day

          • Jane Clack

            May 9, 2016 at 5:42 pm

            Just to let you know I received an email saying that the completion certificate had been emailed earlier today. Hope you have it now.

          • Lee Shaw

            May 9, 2016 at 5:45 pm

            Hi Jane
            I have received it thank you but I dont have a printer , please could they send me a hard copy , concerned where the last one went .
            Thanks for your help

          • Jane Clack

            May 11, 2016 at 5:38 pm

            Will ask.

          • Lee Shaw

            May 11, 2016 at 5:42 pm

            It’s ok I recieved it today in the post

          • Jane Clack

            May 11, 2016 at 5:51 pm

            and Marie had just printed out another one and put in the post first class but this will not go out until tomorrow morning. Anyway, you will then have three!

        • Lee Shaw

          May 1, 2016 at 3:19 pm

          Sorry I do know what stays on my file , but all I’m asking is my completion certificate
          Thanks

          Reply Report comment

    • Lee Shaw

      April 30, 2016 at 1:51 pm

      Hi
      I have paid my final payment for my Iva all creditors agreed to my sum offered as explained in my previous email ?
      Thanks Lee

      Reply Report comment

  • Lee Shaw

    May 6, 2016 at 9:33 am

    Hi Jane
    I have still not received the letter if it was sent Wednesday afternoon I would have got it by now .
    Thanks Lee

    Reply Report comment

    • Jane Clack

      May 6, 2016 at 11:08 am

      Let me know if you have not received by Monday’s post. I have checked and it went out in the post from IVA on Wednesday afternoon. This may well have been after the post was collected by Royal Mail but it will now be in the system.

      Reply Report comment

      • Lee Shaw

        May 6, 2016 at 11:11 am

        Thanks Jane I will do think you for your help
        Lee

        Reply Report comment

Please Post Your Comments & Reviews

Your email address will not be published. Required fields are marked *

*
*