Friend is offering to settle my IVA

[max1980]

Long and short of it is, a good friend of mine is willing to settle my IVA for me. Great im thinking, but I dont know the best way to go about this.

IVA balance £6000 Maximum
Mortgage balance £94'000 (possibly a little more due to missed payments)
House valued by Indepandant Surveyer at £110'000
Am i right in thinking that although I am repaying £142.00 monthly, my IP would still have to address any equity in my property... so £6000 is not the final figure, I need to calculate how much equity I have too?

If I multiply the value by 0.85 because no lender will lend me more than 85% then take away my outstanding mortgage this will give me the figure im going to have to address from my equity as well as the £6000 IVA balance!

If the bold is correct I am in negative equity.

£110000 x 0.85 = £93500

£93500 - £94000 = -£500

I know I need to offer a figure in writing "without prejudice" and i will be telling them that this money from a friend is availble for a limited period and will be paid directly from the friend.

Can anyone tell me if I am presuming and doing the right thing?

After this IVA has gone I have 1 more loan to pay off before I am debt free!!!

Any help is much appreciated, I am struggling to make these payments and have already had them reduced, i am now 1 month in arrears with payments and have no way of paying it this month.

Max

[plasticdaft]

Is the £6000 iva balance what you would pay over the full 5 years? Remember that no debt is written off until the iva concludes,meaning until the final whistle you still owe your entire debts in FULL!!

Who is the IVA with? How long has it been running?

Paul

[MelanieGiles]

If the £6,000 represents the remaining payments due into your IVA, then I think it represents a good offer, but what is the one loan you anticipate being left with at the end of the IVA?

[kallis3]

Could it be his mortgage?

Just a guess!

[MelanieGiles]

That's what I thought Jan, but let's wait and see!

[max1980]

Thank you for your replies!

A bit more information for you.

The £6000 is the full amount if I were to carry on paying my monthly payments.

My ex partner left in November 2009 and went bankrupt using our house as the address. Leaving me with 2 children, our joint mortgage and a joint halifax loan secured to the property which is simply unfair, he now lives in a nice apartment with no debts and works as a taxi driver earning in excess of £500 per week! So you understand my frustration?

Now we (children and I) have only 1/2 the income we had before coming in I am seriously struggling to make payments, putting mortgage 1st then loan and IVA. I am 1 month behind with IVA payments and have no way to catch up, I could also miss next months I fear.

My friend knows that if the IVA fails I will probably have to go through bankruptcy which i will fight tooth and nail to avoid, this is his reason for helping me out.

Many thanks

Max ( femail )

[max1980]

IVA is with Money Debt and Credit, what is you opinion of them? Do you know of anyone who has had a settlment offer accepted?

Thanks

[Shining]

I'm sure on of the professionals will be along soon to advise. I'm not good with F&F amounts but would like to wish you well with your offer. x

[MelanieGiles]

So you mean that if you borrow the £6k from your friend to successfully conclude the IVA, that you will still be left with a debt of £6k to them?

[max1980]

Hi Melanie,

The IVA will cost me 6k if I carry on the monthly payments to the end of the agreement.

I want to offer the IVA company 3k for F&F settlement. Then i will owe them nothing.

The 3k is a gift from my friend which i will not have to pay back. I have declined many times but now the insist they can help me out.

[max1980]

Oh ive got 2 accounts! I thought id already registered!! Sorry for any confusion, Max1980 and Max7051 are same person. Ill have to delete one.

[max1980]

Its been a while but MD&C had a variation meeting and have accepted my offer of 3K for full and final settlement!

I have to have it paid withing 35 days but im not sure what to do now about my credit report etc...

I want to make sure all creditors are removed from my credit report and also to make sure that MD&C are removed from the title deed to my property.

Can anyone tell me how to make sure that this happensw.

Many thanks

A much relieved Max

[kallis3]

Excellent news Max. Congratulations.

As regards your credit report, the IVA will remain on until 6 years from date of acceptance. You need to check your credit report with all three agencies, Call Credit, Experian and Equifax once you have your completion certificate. Any defaults after IVA acceptance will need to be removed.

MDC will remove the details from your property. They only registered an interest, nothing else.

[max1980]

Thanks Jan,

Im concerned that the creditors in my IVA are on my credit report as well as MDC, do I need to make sure these are removed/satisfied? How do I go about this? Also should MDC be shown as Satisfied once I have my certificate?
Max

[kallis3]

The creditors will be on your report. The IVA will drop off after 6 years so no point worrying about that being on there. Not sure if it is put down as completed.

The creditors will be on your file for six years as well, so if they've not defaulted you after the IVA they will automatically drop off. Otherwise write to them and tell them to remove any defaults post IVA acceptance.

Your record will be shot for the full six years I'm afraid.