I am coming to my 1st year review

[woody123]

I am coming to my 1st year review.
I have 2 questions:
Firstly, I have debts of 20k, my IVA is set-up for a £150 a month...I should over the period pay around £9000 back to the creditors. The question is that I have paid a lump sum at the begining of £4500, my first year with this totals £6350. If I offer just over the 9k do you think they would welcome that as closure?
Secondly, T-mobile were quick at the mark to file for a CCJ against me just before my IVA started, will this still affect me/be active?

I just want to get out of this period of my life as I can assure you I have really learnt and was young and brorrowed without even caring where it came from. I want to end the IVA and build my credit score back up. Do you think its worth to see a finacial advise to try and get my credit rating back on track after the IVA?

Thanks a lot guys I really appricate the help.....

[MelanieGiles]

Hi there and welcome to the forum

You may stand a good change of getting creditors to accept that offer earlier. It is hardly worth their while waiting another four years to collect £150 per month from you.

I am afraid the CCJ will stay on your record for 6 years from the time it was registered. The IVA will also stay on for a similar period whether you settle it early or not.

Your IP is likely to be of far more use to you at this stage than an IFA. Let them provide you with a settlement figure based upon returning the original dividend amount and take it from there.

[David Mond]

If you could find your way to pay off everyone in full, you might be able to repair your credit rating quicker than 6 years!

[james.c]

David how would that work?

[David Mond]

Find the lump sum to settle everyone. They then confirm payment in full and your credit record gets noted accordingly.

The fact that you have paid off your debts early should help in restoring same.

[Michael2074]

David,

When you say pay off in full do you mean, the 9K IVA or the orignal 20K of debt before the IVA.

Thanks.


Mike

[David Mond]

The whole amount of the debt you owe - less what you have paid in already plus the IP's feesless any discount they are prepared to offer.

[Michael2074]

Sorry, still confused.

When u enter into an IVA, is the debt over and above what you will pay in the pound writen off?

Thus just leaving that person in debt, in theory the amount they have left to pay in the pound.

Thus meaning any settlement fees would be the rest of what they have to pay in the pound over the outstanding time?

If that makes any sense?

[mole]

Hi Mike, no the total debt is only written off at the end of the IVA term. So this means that windfalls etc, should be used to pay off as much of the original debt as possible.

I understand, that if 'some' money becomes available, (i.e. not enough to pay off the overall debt but a fair amount) this can be put forward as a Full and Final settlement offer. The creditors may or may not accept this but if the offer was less than their dividend return they would be unlikely to accept unless there were other related circumstances, i.e. loss of job, illness, that may affect future payments.

Hope I have got that right, someone will be along later to correct me.

[David Mond]

Swardean - spot on