final settlement figure?

[flashingblade]

Hi everyone

We are still as desperate as ever to come up with a solution, and trying really hard to avoid bankruptcy. So i have an idea...

A house in our street has just gone on the market for 74950, and if we could remortgage ours for that we could pay off the existing 41k mortgage, 16k secured loan, and offer between 15-20k as a final settlement on an IVA debt of 33k. I know its not a lot, and a bit less than 5 years in an IVA, but our other alternative is bankruptcy - which we will state in our ammendment.

Is that offer likely to be refused or accepted when put against bankruptcy?

And does anyone know any good mortgage firms who specialise in IVAs

Thanks!

[flashingblade]

Also, if you ask for a variation to your original IVA and it is declined, does the original IVA still stand, or are youi back to square one.

My IVA company have said i should look into the remortgage and put it all in writing, and say the other alternative is bankruptcy.

What does eveyone think???

[MelanieGiles]

Hi flashingblade

This suggestion may be worth a try, but I think both your IP and your creditors may have some difficulty in presenting this so soon after the IVA has been accepted.

From my recollections of your case, there have been no changes in your circumstances, simply the realisation that you could not afford the payments you agreed to make at the time of the creditors meeting. This represents a failure on your part to correctly budget initially, but importantly on your IP's part for failing to verify your affordability of those payments. They may be not keen to go publicly to explain the reasons for this non-payment.

However if it was the creditors who modified your payments upwards on the day of the creditors meeting, and you accepted these modifications out of desperation, then your current failure to meet them absolutely suggests that creditors were wrong to believe you could afford more.

Speak to your IP about this option, as he/she has detailed knowledge of your circumstances and will be able to advise more fully. But let us know the outcome of those discussions.

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

[MelanieGiles]

Yes - if the variation is not accepted then the terms of the original IVA stand.

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

[flashingblade]

Thanks for your replies Melanie.

Our circumstances have changed slightly.

Im in my 3rd month of being off work due to ill health, a lot of it caused by debt stress. Our mortgage payments up by £25 and secured loan has increased by £8. Im having to find £21 a month for prescriptions, £50 a month to my dad for money i owed him b4 the IVA, which the IP knew about. Hearing aid batteries for my husband at £8 a month...all these little things soon add up - so its no wonder we arent managing.

My husband and i havent had a night out together or apart since 31st August last year. We dont drink, smoke, or have a social life. We have the occasional take away and thats it. We have no money for clothes, and quite frankly this is no life.

[iva_squirrel]

It sounds like your circumstances have changed and unfortunately you were not aware of these changes at the time of your iva was accepted. so i would say it is worth discussing the full and final option with your IP who could ask your creditors to let you pay a lump sum which is less than the full amount of your debt. This is called a Full and Final Settlement. In return for this payment your creditors agree to write off the rest of what you owe.

Best of luck.

Julia Simavi

Shortlisted with special commendation for Debt Counsellor of the Year by Credit Today Awards 2007

View my profile:
http://www.supersonicsquirrel.net/julia ... rofile.asp

Visit my website:
http://www.supersonicsquirrel.net

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[flashingblade]

Thanks

Im just trying to find a mortgage company who will give us a 95% mortgage even though we have been in our IVA less than a year.

Anyone know of any???

[MelanieGiles]

It is very unlikely that you will get a 95% loan to value mortgage whilst in an IVA. What a shame this was not considered before going into the arrangement. And are you saying that your IP has disregarded a creditor - ie the loan to your father - which you are paying back at £50 per month directly to him? This should have been included in the IVA.

It appears that you are unable to afford the original payments, and you should therefore now discuss this with your IP to see what they advise. This case is such a shame, I can remember your very positive posts in Jan this year when your IVA was accepted. There are lessons for everyone reading this thread to consider contingencies - especially at a time when interest rates are on the rise.

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

[flashingblade]

Melanie - are you saying that debt to family couldve been included in my IVA?

I was told that we couldnt include it, and that family debt came last, adn they were expected to wait until the creditors were paid

[Adam Davies]

Hi
Family debt should have been included in your IVA for voting purposes but it is normal for the family members to be asked to stand aside for the dividend payment thus increasing the dividend to the other creditors
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

[flashingblade]

But what happens if family members do not want to step aside, and want to be paid?

[Adam Davies]

Hi
Then your creditors are unlikely to agree to your IVA without that clause.
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

[MelanieGiles]

Family members need to stand side by side with the other creditors and receive their dividend payments - not be paid preferentially as is happening in your case. Your IP was right to advise you that they may be asked to step aside, but that means that they waive their right to any payment until the IVA has concluded. How have you been funding the £50 per month, and is this one of the reasons you are now struggling?

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

[flashingblade]

Yes the contingency fund of £50 we were allowed has been swallowed up by paying my family each month.

[MelanieGiles]

Do you have to pay your family?

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