Lump Sum IVA
It is also possible to apply for a Lump Sum IVA where you can pay a reduced one off payment. The agreement works the same as a normal IVA as it is legally binding and you need 75% of creditors, in debt value to agree to the proposal.
Once your creditors have agreed they will freeze interest and stop any charges being added to the debt. Once you have made your lump sum payment, the remaining balance of your debt will be written off.
In order to obtain agreement from your creditors you must prove to them that you are unable to pay additional monthly payments on top of the lump sum. If they believe you can also make monthly payments then they are likely to turn down your application for a lump sum IVA.
Once agreed you will pay the funds to your Insolvency Practitioner (IP) and they will distribute the reduced settlements to your creditors on a pro-rata basis.
All fees will be discussed and agreed before you enter the arrangement, including any fees paid to Enjay by the IP.
Please note as with a normal IVA this will be registered on your credit report and made public on the insolvency register.