Full and final settlements

[donuts]

Hi - I am impressed by the answers to the posts put up. I thought I would put my own story up and get some advice.

My partner agreed an IVA last month with Payplan as the IP with the first payment due at the end of this month. Whilst the IVA was going through, one of the creditors went to court and obtained a CCJ. We had knowledge that court action was being taken as we had contact from the plaintiffs solicitors. Having spoken to Payplan, they told us not to worry, just sign the court form and send it to them and that the IVA would be agreed and a CCJ avoided. The CCJ was not avoided and incidentally this creditor would not freeze charges until the CCJ/IVA came about plus almost half of monies owed to this creditor is front loaded interest.

Since agreeing the IVA, getting hold of someone from the IVA department has been unsuccessful. The phone number that we had now takes us to a call center which we think is in Spain. The call takers have sent a number of emails all marked urgent but we have yet to have contact from a IVA case handler.

Due to the IVA, our wedding plans have been postponed. As an early wedding present my father would like to make a lump sum payment as full and final settlement of the IVA. I note from other posts that this is possible but would like some advice as to how to go about doing it, any pitfalls and how likely they would be to accept. Also, it never rains but it pours, my partners company may be conducting redundancies in the near future and since she is one of the newest employees she may be made redundant.

Sorry for long post - thanks in advance.

[Cybus]

Donuts,

I think before anyone can give you a detailed answer your post, we are going to need you to divulge a little more information, please.

I assume that it is a five year arrangement and you have effectively not yet made the first payment.

I wonder if you could please advise the level of your contributions over the 60 months (Assuming it is a 5 year arrangement), the level of any equity to be introduced, the total value of your creditors and the proposed return to creditors by the end of the arrangement.

It frustrates me no end when I see people posting on here with complaints that they are unable to speak to anyone at their IVA providers - not because you complain, but frustration that these businesses are giving others a bad name.

If the reasons for contacting him justify it, I am inclined to suggest that you look at the letterhead of Payplan and look at the bottom to see who the IP's are licensed by. Find your IP's name and drop him a line, marked 'For addressee only' In your letter state that you have attempted to contact him / a member of staff on a number of occasions (If you have details as to when, then provide those to him) and explain why you have been attempting to do make contact. If you fail this warrants a complaint, ask for details of the complaints procedure. Go on to say that in the absence of a response from him within say 10 days, you are going to have no option other than to ask for the answers via his Licensing body. You will find you should get a response.


Tell it like it is.

[Sensible77]

My IVA is with Payplan and I've never had a problem contacting them. I have a direct contact and when she is not available the person who answers the phone has always been able to help me. What makes you think they have a call centre in Spain? Payplan are based in Grantham, Lincolnshire.

[MelanieGiles]

They have moved their call-centre to Portugal I understand, for reasons which are not entirely clear.

This post is a strange one, in that an offer of settlement is happening so soon. It would have been far better to make the offer as part of the IVA, and thus avoid wasting creditors time in reviewing yet another proposal. If I were the IP I would certainly not welcome this, but you should encourage your partner to make enquiries of her own IP.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[johnt]

Melanie, I very much agree with you here.

I know everyones circustances vary so much, but an IVA is a very serious issue, which demands commitment from both the IP, creditor and individual.

At any rate, good luck with it all Donuts!

Payplan generally seem to be pretty good bunch.

The move to Portugal is news to me though, and one I shall take a closer look at.

[donuts]

Thanks for the replies.

Further details are as follows. The outstanding debt totals £33k. The arrangement is for 60 months with a revaluation on the house at the 54th month. Monthly repayment is £377. The arrangement allows a repayment at 46p that at the end of the arrangement totals £15180. The total repaid over this period is £22620. The difference I am guessing is IP charges?
In response to Melanie's post, the gift my father proposes only came about when we canceled wedding plans while we adjust to a new spending regime. £377 per month is just on the cusp of being too much. We tried to negotiate but were unsuccessful. Thus we made the decision that if we were to get out of the situation and see this through we needed to make as many savings as possible hence no wedding. My father wanted to know why and wants to try and sort it out hence I am now seeking advice. With the prospect of my partners redundancy I am terrified that we lose everything through insolvency. Why would creditors not look favourably at an early settlement?

[MelanieGiles]

I can understand your situation, but do understand that creditors are fed up of having to receive variation reports so soon after IVAs have been accepted. You may be better off paying for a year and then offering your lump sum settlement, but see what your own IP has to say.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[james.c]

in my iva it states i can not offer a final settlmet till i have been in an iva for 2 years, is this set in stone?

no matter how bad money gets, theirs stll alot more important things in life

[Adam Davies]

Hi
If you had that clause but wanted to offer a f&f within the first two years your IP could put a variation forward firstly asking for that clause to be removed and then for your offer to be considered
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

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

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