I'm 32 and I've been in an IVA for four months paying £394 for 9 months and £279 for the remaining 63 months based on I won't be able to re-mortgage giving me a total repayment figure of £20,808 and come November I will have paid £1,970 leaving me a total of £18,838 to pay. My Dad has offered as a gift to pay the IVA off for me but I'm not sure what figure I should be putting forward, the likelihood it'll be accepted and what documentation I need to provide as part of my proposal?
I just want to get out of the IVA and reset my life to move forward, I found myself in this situation due to the death of my mother amongst other things that all happened at once. I have since received counselling for the death of my mother and have a 3 year old little boy.
I haven't missed any IVA payments but have seen forums talking about creditors might reject it due to there being equity in my house or that they might reject it as they feel they would get more if they were to make me bankrupt. I want to avoid being made bankrupt due to my job and losing my house which obviously were to happen would have a negative affect on everything else in my life and I would lose my job.
Any help or advice would be greatly appreciated and I can provide more information if there is something missing or extra detail that needs to be known. This is all very new to me but would appreciate the help and advice
First you need to check whether there is any clause in your IVA that prevents any settlement offers within the first 6 or 12 months ( some have these clauses ) .
Offering a Full and Final, based on the remaining payments due, is a common exercise and generally welcomed by creditors in that it saves them time and money as well as removing the bad debt from their books. Equity ptential can be addressed by adding on the 12 month extension --- it is a gamble whether there would be any come the time, or that you would be able to release it anyway.
The thinking behind the amount offered is that it should be as close to the amount due as possible, but, often, a reduction can be made to reflect time saved and the 'bird in the hand' factor. Most IVA providers accept this, a few don't like it, but it is up to creditors in the end. I would venture that an offer around £15k would be looked at seriously.
Your IP would need proof of ID from the donor(s) as well as evidence of the existence of the funds (bank statements, which can be redacted as needs be) for money laundering regulations.
I am not qualified to give advice and can only state my opinions, based on my IVA experiences.
Thanks for the quick response, I had spoke to someone at the firm I have the IVA with and they hadn’t mentioned any that it wasn’t possible when I asked them but will have a look in the clauses.
I was going to offer £16.6k as had originally done the calculations based on 60 months which would then mean It would be the full amount and had failed to add on the 12 months so I’m hoping this will be good enough for them to accept.
Do I need to provide any documents myself I.e wage slips or back statements?