Good news I hope

[one month at a time]

A couple a days ago I posted a messgae about releasing equity from home to pay the IVA off. In brief, we have an IVA that is 16 months old. We have recently had our house valued and to our surprise we have approx £90k equity, after all the useful advise on here I spoke with mt IP and he has emailed me a letter today to say that if we can release £70k from the equity he will call a creditors meeting and put this to them. In his letter he says "I can advise that I am able to offer your creditors £70,000 in settlement of the arrangement. By offering creditors £70,000, you will provide your creditors with a similar return to what they were expecting under the terms of the arrangement."
So what do you think? is this likely to happen? or will I be wasting everyones time?
I will be left with about £15k equity, but this is not a problem and have already emailed Tony (Mortgage brooker found on here!)
Just had a call and our IP feels that this could work, has anyone else done this, or what are your thoughts?
Thanks


one month at a time!

[iva_squirrel]

Good morning,

During an IVA, you can 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.

As a rule, people are in a position to make such an offer because they’ve come in to some money or have some savings they can use. Alternatively, a friend or relative may be able to provide the sum required.

Tony is great,you are in good hands.

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

Credit Today Awards 2007 http://www.credittoday.co.uk/awards/winners.htm

[MelanieGiles]

Yes - seems to me that is a good offer, but if you have an equity release provision as part of your IVA, it may be difficult to persuade creditors to accept an early settlement. they may feel it is better to hold out for ongoing payments, and maybe a larger equity release at the end of the arrangement.

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