What is a Full and Final IVA?

A Full and Final IVA is an IVA into which you make a single, lump sum contribution and this is accepted in full and final settlement of your debts. Once you have paid in the agreed amount, you will normally be discharged from the IVA. You do not always need to offer an amount equal to your debts; your creditors may accept a much lower amount if they believe accepting the offer is their best chance of recovering their money. For example, you may owe £20,000 in total, but the creditors accept an offer of £12,000 in full and final settlement.

Full and final IVA’s can work well for people that will struggle to make any sort of monthly payments. They are also a great option for people that have access to third-party funds for example, a friend or family member offers to put up the money to clear the debts but can’t afford to clear the full balance.