Should you receive a windfall or lump sum during your individual voluntary arrangement (IVA), you might wonder if you can pay it off earlier than planned.
You can do this but there are some things you need to consider. You must remember that any windfalls or inheritance that you receive would be considered an asset in your IVA. You must let the Supervisor IVA know about any assets as soon as possible.
Sometimes a third party - such as a family member or friend - may offer to pay your IVA off via a ‘gift’ of money. Your creditors may find this appealing, as it’s not considered an asset in your IVA and may allow you to settle your IVA early.
Should a third party offer to pay off your IVA, they'll need to provide information such as their ID. They also need to confirm that they understand how the funds will be used.
In both scenarios, we would need to confirm the source of the funds. This is a regulatory requirement, as we must ensure that the funds haven’t come about due to money laundering or other illegal activities.
IVAs are arranged by StepChange Voluntary Arrangements, part of StepChange Debt Charity.
Considering an IVA?