Clearly offering a lump sum as a Full & Final IVA is not an option for many of us. If we had a lump sum then we may have already used it towards our debts. But strange as it may sound, the economic hardships brought about the Covid pandemic may provide an opportunity for some to sort out their debts decisively.

The principle beyond a Full & Final IVA is that the debtor doesn’t have access to monthly payments to cover the cost of a monthly IVA – their disposable income is nil. But somehow they do have access to a lump sum. Redundancy is headline news currently and for some, this can mean a lump sum. Admittedly some of this will be needed till a new job can be found or benefits kick in, but it may provide an opportunity to use the redundancy money to offer a settlement of the debts. It is not unheard of for 75%+ of debts to be written off in an IVA – and same applies to the Full & Final offer (see also article on pros and cons of a lump sum offer).

Or the lump sum may come from a family or friend willing to help. Again, not too many of us are fortunate enough to have a rich, generous uncle hovering in the wings – and a request (or appeal!) for help can be embarrassing, but it may be an option. And for others, it may be that releasing equity from a property or selling some other asset can provide funds to make a realistic offer.

These Covid-days are making us all reassess priorities and possibilities. Downsizing, moving away from the expensive cities, releasing pension funds, selling what previously was unthinkable - might all be options to consider. Getting debts sorted and becoming debt-free can be so liberating – it’s worth considering every option!