Any fee due to the IP will come out of the payments you make to them, including any lump sum.
An offer has to be made based upon the remaining payments due to the IVA and you should make it clear that these are third party funds, for the purposes of a F&F only.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Foggy
Any fee due to the IP will come out of the payments you make to them, including any lump sum.
An offer has to be made based upon the remaining payments due to the IVA and you should make it clear that these are third party funds, for the purposes of a F&F only.
IVA is £6100, to date I have made 36 months of payments (£3600)and £1749.96 from a PPI settlement is also added to the pot. Therefore outstanding balance will be £750.04.
I have a 3rd party offering to pay a lump sum for the outstanding balance of £750.04.
What are the chances of the creditors accepting this? and will this enable me to leave the IVA with the debt fully settled?
£6100 seems a very low debt figure to have gone into an IVA for??
If the £6100 is the figure of 60 payments X £100 payments then you cannot simply take away any PPI and payments you have made from this figure to offer a lump sum.
You will owe your total original debt you owed at the start of the IVA + fees etc.
Any PPI paid has gone to your creditors in addition to your IVA payments.
Any F+F offer should be near the amount you have left to pay which will be either (60 -36) payments ie 24 payments at £100 so near to £2400 or if you have over the equity figure at the 60 month mark then you would need to include an extra 12 payments at the £100 in the calculation.
... and don't forget it will not mean your credit file is cleared any earlier, just the IVA will come off the IVA register.
Last edited by FormerlyST1100 on Tue Nov 29, 2016 3:56 pm, edited 1 time in total.
Sorry the outstanding balance -- i.e what the creditors stand to get if the IVA continues is the remaining payments (24 if you rent and 36 if you own your home). So they are looking at getting either £2400 or £3600 on the assumption you continue to pay £100 per month. £750 is likely to be refused, especially considering that the creditors will get less than half of this due to variation meeting fees.
You would be thinking of offering more in the region of £2000 or £3000.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
You really need to offer an amount that is close to the remaining monthly payments, an offer based on your calculations will not be enough in my opinion
Is the third party able to offer a higher figure ?
PPI merely serves to increase the dividend (like overtime and windfalls). It does not reduce the amount of contracted payments unless you hit 100% of the full debt plus fees and possible statutory interest.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
