I am 21 months into my 5 year IVA, I pay £600 per month, I'm being made redundant at age 63 years so unlikely to get another job, my redundancy pay will be £11,500 (15 weeks pay), I want to know what would be a reasonable F&F offer, or could I ask for the debt to be written of?
This was his original post Lisa.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Assuming your contributions could continue as they are now in the normal way (ignoring the fact that is unlikely due to the redundancy) then by my calculations you would have c£23,400 remaining to pay. Less any payments made since you first posted. This excludes any payment due over from the redundancy monies which would be payable on top of the £23.4k.
Assuming your IP will allow you to, you could keep the 6 weeks redundancy and any balance will probably be due into your IVA.
Then if/when new income stream is found your contributions will be recalculated. This may reduce the balance you have left to pay.
You could wait until this point and then make a f&f offer from your pension pot.
The alternative is to now offer all of the £11k, including the 6 weeks worth that I have presumed you might be entitled to keep, plus a lump sum from the pension pot - perhaps £9k, offering creditors c£20k against what they were originally expecting to receive of c£24k.
This assumes there will be no extra year required for an relevant equity in a property.
Thanks Lisa,
I have written to them and offered 10k, I have considered your option of taking the lump sum and offering 20k and is still a consideration, i'll wait and see what they respond with but they seem to be dragging their feet. What is a reasonable amount of time that this can take? I only have till 30 September to decide what to do with my pension as it cannot be deferred
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Once you have given them everything they need hey have 21 days to write to creditors with the variation, giving at least 14 days notice so you should have an answer within about 6 weeks however that doesn't mean your IP will stick to the statutory time limits...
Wed Aug 07, 2019 8:17 amLisa Thomas wrote:
Once you have given them everything they need hey have 21 days to write to creditors with the variation, giving at least 14 days notice so you should have an answer within about 6 weeks however that doesn't mean your IP will stick to the statutory time limits...
....many IPs don't !
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I have spoken to my IP now, he said that 10k is a very reasonable offer given my circumstances, that if it is agreed I will be able to draw a lump sum from the pension and keep it, and that he can get an answer from them in plenty of time for me to decide on the lump sum, he did kind of put me at ease saying that he works for me and he doesn't want to see the creditors get all my pension, I must admit I am a bit sceptible, I'll believe it when it happens.
They say that the call is being recorded, should I do the same when on a call with them?
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Well yesterday was my creditors meeting and they all accepted the 10k F&F offer, and I have it in writing so I can move on, thank you very much for all your advice, it was so helpful
Great post. Very helpful for fellow IVAers to read the pitfalls that exist and the final outcome too. Good luck with your debt free life and retirement
