Hi, I have just received a substantial inheritance - three times my IVA settlement figure. I have been in IVA for 10 months of a 72 month term. I wish to offer 100% settlement immediately. This on top of the 10 months I have already paid? My question is, would this be deemed reasonable? Especially considering I have never chased PPI and even after settlement I will have no credit rating for several years.
What is a reasonable settlement? No one will give me any indication and it just feels like going into a firing squad.....
Your advice is much appreciated
If your inheritance is sufficient to pay all of your debts in full, together with the costs of the IVA, then this should be a simple figure for your IP to calculate. A reasonable settlement is payment in full plus costs.
I have been browsing this site for a while now and was delighted that you have responded as I have always been impressed by your advice to queries.
Is it now a simple matter of informing my IP that I am in a position to settle, propose a figure (100%, excluding 10 payments already received - these to cover accrued expenses) and then send money. If this is accepted and then paid, how long before the IVA is concluded?
Hi Dom. Just to be clear, the settlement figure here should be based upon the total original debt, and not the amount agreed to be paid under the IVA.
Depending upon the terms in your own proposal the amount required from the inheritance will be the amount of original debt, plus fees, less payments already made (and possibly statutory interest at 8%).
If the inheritance falls short of this amount it will all go to the IVA estate and you will continue pre-agreed payments until this figure is met, or the term comes to a close, whichever is sooner.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I understand. The IVA was set up to repay 100%. The fees will obviously be less, as I am month 10 of a 72 month term. I have been informed that I can waive the 8% stat interest....
Cool .. many exclude stat interest these days -- which is a great help (it penalises those who manage 100%).
Fee reduction will depend upon whether fees in your case are time spent based or a percentage of realisations (as creditors seem to prefer these days).
Here's to a fresh start
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I've got nothing else really to add, than the capable Mr Foggy has already stated, but thank you for your earlier kind words, and do let us know how you get on.
It's truly amazing the amount of time Melanie spends on here giving advice. I often wonder do you ever sleep. This forum as a whole has been great. By the way Dom hope you get it settled quickly and look fwd to a life without debt.
Dom.n ...I was in the same position as yourself and through inheritance was able to conclude early and pay back 100% plus fees. It is very rare this happens and all I can say is it is great relief at the end, though I am sure you would rather have still had the loved one around....for me I was able to move forward and gain a mortgage ...my house holds so many memories of that loved one ..in fact ironically the road we moved to happens to be her name in part so even more special!
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
