Advice please

[les9566]

hello all,
after a bit of advice and feedback. just entering 2nd year on an iva with payments of £208 per month. total debt £26k with iva fund payback of approx £13k plus possible remortgage in yr4.

I have split from my wife and we have agreed to sell the house with 50/50 split will give equity of around £13k each. I have sent a letter to my IP offering them £10k full and final settlement. based upon the fact that my iva would have been extended for the 6th year as we would not be able to remortgage as we have split up. i estimated that this would give an approx payback fund of £16k less fees. [which would be around 9-10K]=7

my £10k offer is based on the £3k I will have paid when the house sale goes through plus the 10 giving a total fund of £13k but with a reduced fees of possible 3-4k. therefore giving them a slightly higher % return. the extra 3k is intended to be given to my ex to assist her moving and setting up a new house.... question is are my proposals laughable or does it make enough sense to be considered.

[kallis3]

Hi and welcome.

You will have to inform your IP of the sale of the house as there will be a marker on it at Land Registry and they will need to give permission.

Is the IVA just in your name or does your wife have one as well?

You can make the offer but you might find that the creditors will want the equity (less expenses and deposit for another property) and for your IVA to continue.

How much were your debts in total? You will always owe the full amount until the IVA is completed.

[les9566]

Initial debt 25k and iva forecasted return of 12.5k plus possible remortgage (which would not be possible). The request is based upon my exes need to sell the house based on personal issues and the fact that I would need to pay her more maintainence for her to afford a rental property near her work and my sons school. The initial dividend was about 15.7% I estimate that the creditors would receive a greater return ..however I am aware that they would wish to have both the equity and continued payments..this however would make increased maintenance unaffordable.

[kallis3]

You do need to speak to your IP about this and point out that your maintenance payments would be unmanageable and see what they say.

[les9566]

a quick update...spoke to IP on Thursday and they need some documents forwarding to them. I mentioned that the figures I proposed and the anticipated final return dividend were best guess as I was unsure as to how much the IP fees would be. I asked if they percieved it to be a realistic offer to which they replied that it was a fair offer... I accept the final descision is with my creditors but a glimmer of hope anyway if the IP thinks the figures a worthwhile submitting

[kallis3]

Fingers crossed Les!!!

[les9566]

Kallis, thanks for the support. I really need ti right now.......its always better to come out of the dark into the sunshine..

[8D]

[kallis3]

We're all here for you Les - you'll get all the support, advice and friendship you need on here.

[kazzafunk]

Good luck Les - I hope the creditors see sense and accept your offer and you can then start to move on.

Let us know how it goes.

[les9566]

Thanks for the support it's really welcome. Would like to believe that this can be put to bed, but I am realistic and accept that it could go either way. Irrespective of the descision a valuable lesson has been learnt and stupidity of my actions has been taken onboard..if I never see another credit card in my life it will be too soon thanks again

[plasticdaft]

Fingers crossed les. While nothing is certain creditors are being more realistic nowadays.

Good luck.

Paul

[les9566]

just a quick update...I have been informed that the creditors meeting is on 17th May and FF proposal has been submitted based on a 10k offer. If accepted it would offer a slightly higher return. one small stumbling block was that as the property has a equity release clause I had to request any restrictions were lifted with the land registry for the hose sale to move on. Initially I was told this could not be done untill the meeting had taken place as my IVA could fail. I explained to my IP that I was prepared to accept the risk and could they lift any restrictions on the house, I discussed why I believed that the risk was minimum and I mailed them to fully accept the risk element. RSM Tenon have been brilliant and have kept me fully informed and within a week the restriction had been lifted. this will allow the house sale to proceed on the 18th May... hoping this can be put to bed, lessons learnt and all I want to do is move on

[Shining]

Good luck for the 17th May, great to read your postivie feedbaack for your IP. Good luck for your future. x

[Julie]

Good luck for the 17th [:)] xx

[luluj]

Good luck on the 17th May - really hope it works out for you so that you can move forwards in your life.