IVA Settlement??

[JayCee]

Hi,

I need help, and I am very very scared!!

I have had a tough few years, and I found myself in a situation about a year ago where an IVA was the only option, so here I am!

A year later I have had another upheaval that has made me re-assess my life, and I want to leave the country in 2 years, but I don’t want to take the IVA with me because firstly the exchange rate would probably cripple me, and secondly I can’t guarantee immediate employment out there, and I can’t save any money to “buffer” this while I am getting a job coz it’s not allowed!

So what I wanted to do, was to move back in with my dad, thus saving me £1100 per month, and get a second job, continue the IVA as it was but double up the payments thus paying off the outstanding amount in two years, still returning the same 42p in every £1. BUT having spoken to my Supervisor she has said that most likely all the creditors will do is take the extra money and leave the term standing for 5 years, so I would be working hard for nothing!!

So she suggested the only option was to go for Full and Final payment, but this means I have to raise £22,415 upfront and this I have no way of doing, and no family can help! IS THERE ANY OTHER WAY PLEASE!!

Are there any companies who will provide an unsecured personal loan to someone wanting to pay off an IVA? I will have surplus of £1100 (after rent to dad and bills and car) per month just out of my main salary, that is not to mention the second income that should bring in another 300per month, so I will have more than enough available to pay the loan.

I am not afraid of work but I just know that whatever I do I will not ever manage to pay off the full £39,382 in two years, that would be a massive 1640.91 per month, as opposed to the £990 (with interest) per month for the 22k, but if I work my butt off and get close by the end of the two years there is no guarantee that my creditors will give me any lee way at all and may still expect the IVA for run for the full term!

OR… is it going to be beneficial to just pay in as much as I can and see if they will close it after two years, if I work VERY hard I may be able to return more to them in the two years than I would in the five?!

Any help or ideas much appreciated,
Jay.

[MelanieGiles]

Hi JayCee

As one of the forum experts, and an IP in practice, I agree with your own Supervisor in that doubling th payments will not reduce the timescale. Would your Dad be able to help with this, and you could then use your surplus income to pay him back.

Alternatively you could double up the payments, and face the consequences of not being able to pay when you emigrate. Your Supervisor could then ask creditors if they would accept what they have received in full and final settlement - and are unlikely to want to make someone bankrupt who has no assets, no income and is now living abroad. There is no guarantee that this will work, but you could take your chances if there is no way of sourcing the capital required to settle now.

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

[JayCee]

Hi Melanie,

Thanks for you info, WOW your up late, I thought it was only me who couldn't sleep!!

Okay I think I get what your saying, so it would still be favourable for me to pay in as much as I can manage into the IVA? That might help my case?!

I have asked my dad if he could assist, maybe rasing the money and I would pay him back but he is not in a position to be able to help I am afriad, hence why I was thinking about attempting to get a personal loan, but am I even allowed to try whilst in an IVA?

But also, if I were to take my chances, and pay in as much as I could, then leave the country if they were to attempt backruptcy what does that mean to me?! or what else could they do?!?!

Thanks again for helping!

Cheers,
Jay.

[MelanieGiles]

Well if the creditors attempted to make you bankrupt, and succeeded, then that would mean you would be bankrupt. This is unlikely to affect you tremendously, but I would try and pay as much into your IVA as you can so your IP has a bigger bargaining point with the creditors on your behalf. Taking an additional job is an excellent idea, and the closer you get to paying that original dividend, the more chance you have of avoiding bankruptcy.

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

[JayCee]

Thank you VERY much for your help, I think that will be the plan pay in as much as I can possibly manage and see where that leaves me!!

Again Thank you!

Jay.

[Adam Davies]

Hi
Could Jay,s IP not put forward a variation meeting now asking for creditors to accept increased payments ,terminating in two years, because the debtor is going to leave the country ??


Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[MelanieGiles]

I do not think that that is a very good idea. Creditors will want the increased payments anyway if that money is being earned, and may feel that the debtor is neing reckless by going abroad and leaving his debts behind. Personally, I would deal with this issue as and when it arises.

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