Original debt £36400 . IVA 60 x 320 = £19200. Paid 26 = £8320 . Owe 34 = £10880.IPs fees etc max 35% of total payments.Therefore IP = £6720 Creditors return = £12480 = 34p in £. Due to age and work availability i may find it hard to continue to make payments. I have no assets but do not want to be made bankrupt. A friend has offered to lend me some money providing it is only used for a F&F payment.He is not able to lend me the full £10880 owing.I would then have to repay him out of any surplus money i have. Assuming IP will take full 35% of payments i make , what will be a reasonable amount to offer , or will it not be worthwhile making an offer? Most of debt has been sold to Max Recovery. Any suggestions would be appreciated.
Hi Clasher. I am assuming the supervisory fee to be in the region of £750 per year and almost 3 years will be remaining should variation be approved. There would also be a variation fee payable but the overall reduction in fees should be in the region of £1500 meaning just over £9,000 to achieve the original dividend. In addition, your IVA is in jeopardy given the uncertain income levels so an early closure would seem the best option for creditors and with early money they would certainly consider a reduction in dividend.
To achieve a dividend of around 30p would require funds in the region of £7,500 and £6,000 would realise about 25p. I see no reason why Max would reject the lower offer which is what I would propose.
Thanks for the reply . I am not sure if the IPs fees etc. reduction will be as much as you state , as it states that they can take 35% of total payments, which includes all costs including VAT.So as i have paid £8320 and say offer £7500 = £15820 then IP could take £5547 leaving £10273 for creditors about 28%.Again thanks for the reply - very helpful .
At the end of the day your IP should act on your instructions - offer what your friend can offer and no more -you have paid until now and to finish early would surely be beneficial to your creditors - good luck !
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
Your IP will and should offer a discout on his Supervisors fees - have a chat with him.
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.
