How do I make a settlement offer?

[Calamityjane]

Hi, I'm new to the forum.

I recently started an IVA but the monthly repayments are really stretching. First payment is due on 1st feb. A family member has now offered to lend me the money so I can stop my IVA. I am with Payplan. My current dividend is 46p in the £, I am considering offering 50p in the £. Payplan have told me this will not cover Payplan,s fees but it is as much as my relative can get together.

I would really appreciate some guidance on how I should proceed to offer this as a full and final settlement.

What does this look like in terms of logistics and what are the next steps for me? Do I write directly to my creditors individually, or do I write to Payplan, or both?

Thanks in advance, this is a great site and I think it is wonderful the way you guys give so much help and advice to those of us who really need it [:)]

[Adam Davies]

Hi
What a pity that this offer was not available before your IVA was agreed.
Do you have a proprty and the equity release clause ?
If not then I suggest that you write to Payplan and state that a third party is now willing to make a loan to you on condition that it is used to conclude your IVA and that your disposible income will be used to repay your relative.
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

[Calamityjane]

Thank you Andy. Yes, you're right but we kept it all quiet and only told my father in law when we realised how we would be strugling with the monthly repayments. At the moment we have negative equity but there is a clause in the iva for the house to be revalued in month 54.

[Adam Davies]

Hi
Sometimes an early offer is not that attractive to creditors if they have a bite of your equity.They may prefer 54 payments and then a lump sum from your equity.
Have another chat with Payplan and if they agree then it is well worth a try
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

[Calamityjane]

I have signed the paperwork so does this mean I have to continue through Payplan or can I contact the creditors directly myself? I don't have the greatest confidence tbh in Payplan as they did not do an interrim order when I told them that Nat West were issuing a ccj and this has caused me great problems. Would you advise that it would be in my best interests to try yto get the ccj set aside?

[MelanieGiles]

Why have the payments suddenly become unaffordable so soon into your IVA - and did you give this a lot of thought at the time that you signed your proposals? Creditors these days are not favourable to variations so soon after the IVA has been accepted, and it might be better that you wait a while - having said that as the offer is being made by a third party they will get their money a lot sooner. You will need to see what your IP has to say about putting forward a revised offer, and of course their fees to date will have to be covered.

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

[Beechy]

Hi Calamityjane

When your IVA was approved did the creditors ask for an increase in your original proposed payment?


Dave Beech

[Calamityjane]

Yes, it was £377 per month but the proposal was for £267 per month. I accepted because Nat West had issued a ccj the previous month for the full amount that I can't pay and I really really don't want to go bankrupt. I was forced into a corner by Nat West. So I thought I'll just have to make do, but there is nothing at all left over for emergencies or maintenance.

I am really confused as I have been told that if they haven't set the ccj aside then this can still rear its ugly head. But I thought the iva cancelled out the ccj. Please could someone clarify this for me?

[Adam Davies]

Hi
The IVA does overide the CCJ so you have no worries there.
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

[Calamityjane]

Phew! Thanks Andy.

If I send individual letters to my creditors, what happens if some agree and others refuse, does that then invalidate my iva?

[Adam Davies]

Hi
You must go through your IP with any offer as you are now in a legally binding agreement.
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