I'm wondering about how much I would need to offer a Final lump sum to finish my IVA early. Also is it merely that you need the necessary amount of cash and that's all or do you need an urgent reason too?
In my case, the IVA is in it's 4th year (of 6) with a debt of 55k with an expected payback amount of 19-20k. We've currently paid 12k so far and so am wondering what would be acceptable as a final offer to finsih the IVA early(If that's allowed) ?
Hi. Ultimately it's up to the creditors, but often an offer near the amount still to be paid (in your case 7 - 8 k ) is acceptable. If there are pressing reasons, ill health, job losses etc., lower offers might be looked at more favourably. However, from the creditors point of view, they would be getting what they expected with the bonus of getting it much earlier.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
One other thing - Assuming the offer is enough and accepted. What happens with the equity release clause? Will they try and get us to remortgage? (Which is what I'm hoping to avoid at all costs as my current mortgage has a 15 year fixed rate which makes life a lot simpler)
Hi Peter.gr......I would also be interested in having one of the experts explain what happens to the equity release clause....does the F & F payment clear the IVA and the charge over your property OR do we still have to raise funds via remortgage etc to release a certain level of any equity. Thanks
Anyone in an IVA will find it near impossible to remortgage so if you have equity and are planning a full and final offer then I would factor in an extra 12 months payments.
Once the full and final is agreed and funds paid then all debt is written off and the RX1 restriction lifted from the land registery
Hello Peter if you have any equity in your house,i would contact your IP and ask what type of figure they think could be accepted as a F&F offer inclusive of your Equity clause.Mention the £10,000 to start the ball rolling.
Ok I've spoken to the IP and suggested an offer of 7k and they think this will be viewed favourably. My variation appointment is in 2 weeks. Fingers crossed!
fingers crossed for you Peter - your IP hopefully knows how your creditors are currently working and what is faviourable so £7k seems a good offer ......have you ability to increase this if necessary to take into account the equity release clause as well should they seek more ?
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
PJG Recovery have a free online advice channel at www.debtadvicetv.com. If you are ready to ask us for specific advice or help, then get in touch at www.pjgrecovery.com/contact-us.asp . I look forward to speaking to you.
Had the variation meeting this morning. All went smoothly just went through income and expenditure again and the IP are going to ask that the house be removed from the arrangement as there is no equity available, which is good news for the creditors F&F meeting. I'll know if this is accepted in 6-8 weeks and wether I'm free from the chains or not!
