Advice needed on settling early??

[kandh]

Husband has an IVA for total unsecured debts of £62,785.45. It was set up on 9 December 2004 with the first payment made 5 Jan 05 of £460 per month. I cant find some of the original paperwork however have got the following info:

1 we were to pay an overal minimum dividend of 33p in £.
2 IP's fees were not to exceed £3,750, taken pro rata over the
term of IVA.
3 Nominee's fees are £1,800.00
4 Specific bond of £306.00
5 Sec of State fees £35.00

At the second review the IP was able to declare first interim dividend of 10.03p in the £.

In addition to the payments we've made for the past 29 months (including the one due next week) totalling £13,340.00, we have made two further one-off payments of £383 and £240 at the review dates in respect of additional income. Total amount received by IP therefore £13,963.00.

We would have 31 months left to pay which would be another £14,260.00 if payments were kept to £460 pm. (we do not own our house - its rented)

I have a possibility of getting some money from family (who DO NOT know about IVA). How does a FFS work? Is the 3rd party contacted at all with regards to the money and private repayment agreed between me and my family? Can I be classed as the 3rd party?

How long is the process? I understand that there would have to be a variation meeting? How long can I reasonably expect from contacting the IP to settle to the meeting and when would I be required to pay and how? Can I pay from our joint account where the money is likely to be deposited.

Lastly and most importantly.......... could someone explain the above fees etc to me and how it works each year and what i should reasonably expect to offer, bearing in mind the dividend expected by the creditors of a minimum of 33p in the £.

Sorry so long but got tons of questions? I know my husband should speak with his IP but just want to get it straight in our heads before we speak to him so we have some idea of what we and they are talking about.

Regards
kandh [:)]

[Adam Davies]

Hi
I,ll try to answer each of your questions
There will be no contact with a third party,simply say to your IP that a family member is gifting the money to you but ONLY if it is used to settle your IVA.
Your IP fees should reduce by £750 each year,so a £1500 reduction should be possible,however there will be a fee for the variation meeting[£500 possible]
If you offered £13500 this should return the original dividend but check this with your IP.
It should take about 6 weeks[28 days for the variation meeting] then when it accepted simply send the cheque off,they will not be concerned that it comes from the joint account.
Good Luck

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

[kandh]

Thanks for replying so quickly!

I think we have a lot to talk about when hubby gets home from work. I think I can only borrow £12,000 from family, and I dont think I can find the rest so will need to sit down and do some serious sums.

Ideally we would like to settle the IVA before the next review and with this in mind, this could bring the figure down to £12,000 or thereabouts? Is it a good idea to settle so close to a review date? We are normally contacted beginning of Nov to revise income/expenditure and provide wage slips.

Also, once we start the process, would the final figure get adjusted to take into account the payments during this period to a final cheque being sent or would this be in addition to? Would like to know this now so that we can try and budget for this extra amount if need be?

Regards
Kerri

[scaredkez]

hi welcome to the forum i am only posting as it is so unusual to find someone with the same way of spelling our name.

hope you can work your FFs to your advantage and good luck.
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[kandh]

Hi Kerri! Have to admit I have only see one other person who spells their name like us!!! sorry I haven't replied before now but been having computer problems! I have been following your blogs etc and am really sorry that some things haven't worked out [:(] (re the car etc) but hopefully you will be able to sort out a little runaround soon.

I have a couple more questions if anyone can help??

We have decided that as the loan from third party will not cover what we would need to pay back now as FFS, we are going to wait for 4 months. This would mean that following our payment at the beginning of September we could offer a figure of £12000?

Does this seem ok? With the figure of £13963 already paid (including bonuses etc) this would amount to a total amount being paid of almost £26000. If I take off the fees, variation meeting fees etc etc off, this would leave a figure of roughly £21000 which would give a dividend of 33.4 p. Proposal was for a minimum of 33p. Is this a realistic figure for the creditors to accept.

The creditors are RBOS (2 cc's, loan, bank account, and another cc with Tesco), MBNA cc, Barclays (cc, loan and current account) Halifax loan. I know that a couple of them have been passed to another company (ever.... something or other!!)

Also, do we approach the IP with this figure or do we say we would like a FFS and he works it out or do the creditors work it out at the variation meeting?

And finally (for now [;)]) once we contact the IP and a variation meeting set up, which Andy says above takes 28 days, it could well be that the next payment in October would then become due. Do we still pay it or would this payment then be taken into account for the final figure or would it be in addition to (if you see what I mean[?]

Sorry [:I]

[MelanieGiles]

Hi kandh (by the way Kerri is the Welsh way of spelling your names!)

Your IP will need to know the identity of the provider of funds, and have confirmation that the funds are readily available. Ask them initially to provide you with a settlement figure, for you to consider, and it may be worth confirming that you only have £12,000 available now, but if you are able to achieve the original dividend with an additional four months payments, then base the variation on that but you don't need to wait until those four months have passed. In reality it will probably take that long from start to finish in any case.

Good luck, and don't forget to tell your husband to tell his IP that this is a loan rather than a gift, and is therefore repayable my using the £460 per month his is currently paying.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk