Hi
I have been on my IVA for 11 months. Total debts were £20k to start with. IVA was approved with monthly payments of £154 a month (total to be paid back on this schedule= £9700) but I got a new job right after the IVA so payments were increased to £172 a month.
I'm completely stressed out by my IVA, even though I am managing the budget effectively and even saved for a holiday this year! I am an anxious person at the best of times but since starting the IVA I have had to have regular doctor's visits to monitor my dangerously high blood pressure.
My mum is petrified I will make myself ill with worry (she has previously suffered stress and depression) and has offered to loan me £15k (by re-mortaging her house) if my creditors will accept it as full and final settlement. The problem is, I have a variation clause in my agreement that states no variations can be made within the first 24 months (which seems odd as they are allowed to increase my monthly payments during this time?!)
Is it likely that my F&F offer will be accepted now or are the 'variation' clauses completely non-negotiable?
To date I have paid £1750 towards my IVA so with the £15k offer I will have contributed nearly £17k - is this a reasonable offer for a £20k debt?
My IP has previously been less than helpful/informative - when my pay increased, my lodger moved out (I rent privately but am permitted to sub-let a room) and he would not allow me to increase my expenditure and took into account my whole payrise when calculating my new IVA payments (my IVA states I can keep the first 10% plus 50% of any excess) so I would rather not discuss this directly with him until I know where I stand with my chances of acceptance.
Any advice/help would be much appreciated.
Apologies for such a long post!
As you agreed to that modification, it may be difficult to override it at this stage, but not impossible if you are going to make a good offer of settlement - which £15k actually is.
Your IP ought to sound out a couple of the larger creditors - you may find that most of your debts are now with Max Recovery, who are pretty receptive to commercial, early settlements.
Let us know how you get on, as I personally find that modification stupid.
Your health is important - far more important that money ! Propose the full and final - you never know by the time it is put through and accepted you may be nearer the 24th month anyway!
15K is a great settlement to offer - and one that I would hope would be approved by your creditors - it is far more that initially they had been told to expect !
Speak with your IP - think of yourself in this and don't let your health get any worse.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
A lot of cases have this "no modification can be proposed within 12 or 24 months" Don't worry about it. Your Supervisor should be able to propose a F&F settlement asap based on putting the facts about stress and your mum in a letter to creditors. Press him to do so - there should be no problems and creditors will be delighted for a lump sum divi now rather than wait for a yearly payout over 4 more years. Good luck
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
thanks for all the info - it's a relief to hear there is a possibility I might be able to end it early. It's silly but I'd be far less stressed out knowing that I owe the money to my mum than to the creditors, even though the debt will be a similar amount.
Incidentally, if the F&F is accepted, will my IVA still show on my credit report for 6 years (as I've seen mentioned on this forum)? I was told by clear Start that my credit report would state 'IVA successful' for 6 months after completion and then be removed (if I successfully complete and satisfy the full 5 years) - giving a total of 5 and a half years on my credit history. I'm sure there is no mention of a six year period on my agreement. If I complete early, will it help my credit history?
Your credit rating will be shot for the whole six years from the date of the IVA approval.
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
OK thanks. The literature with my IVA agreement states
"The IVA stays on your credit history for one year after your IVA ends"... so i take it the F&F settlement would not count as the 'end' of my IVA? This is a little misleading
The only reaon I am concerned is that I may want a property (mortgage) before I'm 30 (I'm 26 now)and this will certainly not help! Although, to be honest, clearing the debt to my creditors is my main goal so that I can feel like I have a 'normal' life again.
When you did your IVA, the agreement would have been printed with the assumption that you would do the full five years, not clear it part way through.
Everything on your credit file is there for six years, then it starts to drop off.
You will have a certificate of completion once it is finished, and this will probably help if you need to get a mortgage.
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
I am new,contemplating on an IVA, how can you get a mortgage after an IVA. They all say you need a deposit these days. How much can you save in an IVA. What is your experience? How much does a person have to live on please? Do I decide how much. How about holiday money to Skegness. I have a caravan. Is £50 a day allowed.
Hey 60folly, welcome to the forum. You'll probably need a good size deposit even if you hadn't been in an IVA. An insolvency practitioner will go through all of your income and expenditure before deciding how much you will pay. There are other options so please speak to an insolvency practitoner or post a few more details for us to help futher. X
Under current conditions in the mortgage marketplace, a deposit of at least 20% may be required if you are looking to purchase a property post IVA, until your credit rating is restored.
Savings are allowed during an IVA, but only for items which are paid for on a irregular basis such as house and car maintenance. A lot of people do manage to save for a modest holiday with some careful budgeting.
I agree with what Viki has said. I would also add, check out www.iva.com for a list of companies who can help you.
Give a couple of them a ring and they will tell you all your options.
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
Hi Andy
My IVA was originally set up with Clear Start but has since been passed over to Debt Free Direct (I'm not sure why?!)
I was earning £17k when approved for the IVA but this increased when I got a new job - I advised my IP that I was actively seeking better paid employment so perhaps they accepted my proposal with a potential increased income in mind. As it happened, I made payments of £154 for 2 months before I got a new job and pay-rise, which increased my IVA payments to £172.
My personal statement detailed previous employment issues (2 redundancies in one year - aviation industry!) so the only viable alternative at that time was BR, which I was not willing to consider. My aim was to pay back my debt, not have it written off - so the IVA was an attractive option for my creditors I think
