in IVA, need guidance for full and final payment

[blaikie]

I currently have an IVA. With the recent rises in mortgage rates it is unlikely that I will be able to keep making mortgage repayments and keep up my IVA payments. I can sell my house and need some guidance about making an offer that will be accepted for full and final payment. The details of my IVA are.

Amount £33561.63
With fees and to settle at 100p the company is asking for £39,155.08

To date I have payed £2,632 This has been used to pay nominees fees 2,240.14 and VAT £392.00

The agreement is for a minimum of 55p in the pound.

What advice would you give as to a reasonable offer for settlement, including fees. I think I will have about £23,000 available from the sale of the house after all the expenses associated with this are taken care of.

Many thanks

[MelanieGiles]

Hi blaikie

I am one of the experts on this forum, and also an IP in practice, so I can give you the benefit of my own experience, but other experts may have differing views.

Can you firstly tell me whether your property was included at all within your IVA? Did you agree to release equity following a revaluation during the fourth or final year? If so, this will have some bearing on the sort of settlement you may wish to put forward.

Also, what do you intend to do when the house is sold? Move into rented accomodation? How much will you need to retain from the sale to cover your new rental and relocation costs?

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

[iva_squirrel]

Hello Blaikie,


Welcome to the forum.

When you are in 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 a friend or relative may be able to provide the sum required.

Your £23000 offer would appear to be reasonable, but you must speak to your own IP to see what they say.


Good luck.


Julia


For more information about IVAs, please visit my website:
www.supersonicsquirrel.net

[blaikie]

Many thanks for your replies.

My Property was included in my IVA and Yes I did agree to release the equity during the fourth year.

Once my house is sold I plan to relocate to another part of the country to live with my boyfriend so will also be changing jobs. It would be great to have some money to relocate ie moving costs but for me the most important thing is to be debt free so that I can have a new start.

Thanks again.

[MelanieGiles]

Hi again

Your IP will need to know what your new living costs are likely to be when you relocate, and how you are intending on sharing those with your boyfriend. This is usually done an a similar ratio to both sets of earnings, so they may well need details of your boyfriend's salary.

If you can still afford to make repayments, then you will need to do this as well as handing over the property equity in accordance with the terms of your IVA proposal.

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