F&F Settlement: creditors have accepted.

[andym]

Hi there
I am a fair way into my IVA now but there is a possibility that a friend can give me a lump sum so I was wondering if it might be enough

My original debts were £39115.77
My payment plan totals £18495.72.

The minimum dividend is 37pence in the pound
Says here supervisor's fess are £3750.00 + VAT and disbursements

As of my Sept 2006 review, I had paid £13,088.50. Some money has been held in case of bankruptcy and fees taken, but my creditors have been paid £5338.93 (13.6% of debt)

So far this year I have paid:
4 * 312.50
1 * 280.00
4 * 480.66
519.97 (extra) = £3972.61

I earn more than I did before, but bills have been increasing too so although I make extra payments at the moment, I don't think I can continue to so I would prefer to get it all gone

So I could get a lump sum of £5000 (less or more depending on what they might take) maybe which would mean the total paid to the creditors will exceed my original, especially when fees are removed but will they see it like that?

Regards,
Andy

[MelanieGiles]

I would have thought that offer would be acceptable, but you will need to ask your Supervisor what they think. It all really depends upon how many payments you are yet to make, multiplied by the amount you ought to be currently paying, less the IP's future costs.

Do you own a property which involves an equity release at any stage?

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

[andym]

I have just spoken with the IVA people and they have said that looking at the money I am yet to pay being £7007.08 and that they would probably advise that as being the settlement figure

So even though I have contributed more into the pot from overtime and what have you that kind of doesn't count?

I don't own a property so no issues with that.

[MelanieGiles]

They are speaking from experience, I presume, but you could always tell them to offer the £5,000 to see how creditor would react.

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

[Adam Davies]

Hi
It amazes me why some IVA companies state that to end the IVA early you will have to pay all the remaining contributions.I think that this is just a cop out and an easy answer.
Go back to them and ask them why there would be no IP savings from ending th agreement early ?
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[andym]

Well I have written a letter offering £5500 as a final payment and will pop that in the post later and let you know what their response is. It's 1500ish less than they would have got if I made the agreed payments but they get it 16 months earlier so fingers crossed!

I don't understand where they got their final figures from considering the agreed payments were based on a salary at the time. I assume they have just added what is remaining to what has already been paid to work out what the final payments should be, maybe?

They also said if I reevaluate the money I can afford to pay then the terms may need to be extended to ensure the correct payments. However I don't have any intention to pay less than the agreed amount, just less of the 50% excess figures. Maybe I wasn't explaining myself well to them

Thanks for the input you gave.

[Adam Davies]

Hi
I think that a letter may get a better response as it should go to a senior person in the company and hopefully your IP.
Didn,t quite understand the bit about extending the terms,unless they felt that your monthly payments were going to reduce.
regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[andym]

Hi again,

Yes I think that they thought I wanted to pay less than the 460 odd per month that the current payment is set to.

I shall hope for the best with the letter.

It has been very interesting reading through this site

[Adam Davies]

Hi AndyM
Keep us posted as to how you get on,Lets hope that you can setle your IVA and move on.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[andym]

Okay they are going to kickstart the paperwork once they receive the letters I sent. They say they will then do another meeting so I will be sent paperwork I need to fill in and sign and then they set a date for a meeting.

Looks like the meeting will be after the 8th August. So I will have made another 2 payments by this time, as I assume I still need to keep doing this?

My IVA company said there is 7007 (ish) left if I were to make the payments as agreed, so with 2 more of 460 before the meeting I hope my 5500 offer is acceptable

Is it as before where a 75% agreement will push it through?
It's all a bit stressful as I can almost see this finishing but bit worried the creditors will want more money than I am offering

[Adam Davies]

Hi
well it looks like your in with a good chance and yes keep paying in full until the meetig date,once accepted you can stop paying and just send in the £5500.
Yes it,s still a 75% yes vote,by value of debt held of voting creditors on the day.
Regards


Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[andym]

I spoke to my IVA company and they say it is up to me whether I keep up the payments. Therefore, I think what I will do is not pay for the next two months but instead put those payments into a savings account.

If the offer is rejected I can restart the payments and make up the arrears otherwise just pay the offer sum and be cleared

[andym]

Well I got the details in from the company. They have scheduled in a meeting for 20th August.

Says a sum on £5500 and the supervisor shall be entitled to an additional £500 + VAT for costs of the meeting

Don't know if that means I have to pay the fees or whether they are taken from the IVA funds?

Either way, now just need to see what happens!

[Adam Davies]

Hi
Well if you need to pay it you have the money from the saved contributions.
Good luck for the 20th.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[andym]

Well I was wrong and the date was actually today. But i gave a call to my IVA company and got the news that the creditors have accepted. Just waiting on the paperwork to see if they will take the £500 I mentioned from the entire thing or whether it is an extra. I hope it's not extra, I should have checked it really but was all in knots

So once I pay the money what happens? Is my credit record updated to show I am no longer uder the IVA?

Would i be able to apply for normal bank accounts, credit cards etc?

Note I do not want credit, but the nbature of my work means I have to pay expenses and similar and with a brand new job i don't want to explain my problems unless I have to!