IVA Completed - Full & Final accepted - Yippeeeeee

[jellybug]

Hi,

I have a question in regards to our IVA...We are currently 2.5 years through our IVA and my Sister in law has offered to give us some money to try and end the IVA early. I am unsure as to how much we have left to pay and whilst looking at our last Annual report to creditors is has confused me more!

Original amount owed to debtors was £57,570 and it says that creditors claims logged to date were £36,181. There are 4 creditors on statement of affairs that have not made a formal claim.

My question is...we have paid £12,330 in monthly contributions plus £7978 in commission / bonus payments. My Sister in Law is asking how much we would need to settle early and I am unsure on what the creditors would consider acceptable? I think total amount payable to them over the whole IVA was sue to be £27k.

Also would my Sis in law have to write or sign anything that she is giving us the money?

Help! =0)

[MelanieGiles]

You will really need to discuss this with your own IP, but as you are half-way through do I assume that you have another £12,330 to pay to the end of the arrangement? And are you property owners with a fourth or final year equity clause?

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

[jellybug]

Hi, thanks for quick reply. Yes we are half way through now but do not own a house so do not have any equity to release.

I am looking to clear off the IVA as when we initially went through the IVA process I was working full time, but have not been now for a while due to very ill health.

Regards

p

[MelanieGiles]

You really need to look at a sum which will give the same or a better dividend to the creditors to persuade them to release you early. Depending upon your IP's fees, I would have thought that £10,000 to £12,000 would be sufficient.

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

[jellybug]

Thanks again...I have looked at the original agreement when the IVA was set up and our total amount to be paid back to creditors is £24,660, so less than I thought, but with total fees of 8,813.

So we have paid over £12k so far. How do the fees work, would the total fees be reduced if the IVA is settled early?

I am just ensuring that I get all info needed and would not want to make an offer for it to be declined. Would you still say between 10-12k to settle?

Thanks again for your advice.

[Beechy]

The time cost will be decreased on the case but there will be a cost implication by doing a variation meeting. Overall i think the costs will be reduced. Be mindfull that the cost of setting up this legal agreement is quite costly

Dave Beech

[Adam Davies]

Hi jellybug
The fact that illness has affected your income will help your f&f offer as your creditors may feel that there is a danger that your IVA will not go the full term.
Speak with your IP and offer the 12k,state that you are having problems with your income and that the loan will only be made if used to conclude your IVA.
As long as they support your offer and write a good proposal your offer should be accepted.
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

[jellybug]

Thanks very much for your help - I will let you know how I get on..

I am not all too confident in my IP / Company as they are terrible for communication (once referred as a 'Factory'). Fingers crossed!

P

[Beechy]

Sounds like you will have to do most of the work in the justification part of the argument when you speak to the Company who is supervising your IVA.

Use the advice you have received here when you speak to them.

If you find that they are putting forward arguments that you cannot answer as to why this might not be a reasonable or acceptable proposition, come back to the forum for further assistance.

I am sure you will be ok


Dave Beech

[beckyj78]

Just a quick question. We are also half way through our IVA and have paid off £11200 so far. We originally owed before any calculation £35400 and after calculation if we followed the IVA to the end we would end up paying £27980 minimum not included pay rises. How much roughly do you think a sensible settlemet offer would be?
Thanks

[MelanieGiles]

I would have thought in the region of £15,000, but best to check with your own IP who has detailed knowledge of your case.

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

[jellybug]

I've got the funds ready now and am about to write a letter to propose an amount for early settlement. I spoke to my IP (well someone from the company anyway as my supervisor can never be located) and they have said that I also need to get the person giving us the money to write in to confirm the amount too. Is this standard practice, what does my Sister in Law have to say and does she have to provide proof ie.bank statement? It's just that she is very funny about peopl seeing her financial info as she is a stockbroker and is very protective understandably!

Thanks

p x

[MelanieGiles]

It would be good practice to get the party who is providing the funds to confirm their willingness to do so. A simple letter of intent should suffice.

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

[jellybug]

Thanks Melanie. I also cannot find the amount in terms of pence per pound as I think it's been mentioned they prefer to see it in this way. But it does say 28% dividend - prob being stupid but would this be 0.28p dividend [:)]

I am unsure on Fees also as they charge £3k nominees fee which I assume is at the start of the IVA but also Supervisors fees £900.00 plus 17% per year, we are half way though the 3rd year so assume that total Supervisors fees refundable as such would be just the 2 years remaining (£2168.67)

sorry for all the questions - I wished my brain worked as well as it used to![:I]

[MelanieGiles]

28% is 28p in the £ or 28% of your total debts - but you do also need to take costs into account. I would imagine costs are going to be in the region of £8,000 on top of that - but you really do need to check with your own IP.

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