Living with parents - Early settlement?

[Stewie]

Hi, i've just stumbled accross this forum via google and am hoping someone can help. I started my IVA in Aug 2006, £425 per mnth and for 60mnths...

My parents have recently told me they might be in a position to settle it for me, and i can pay them back when i can.

Is this possible? and would it have to be the exact amount thats oustanding?

Thank you

[lily]

Hi and welcome

It is possible to propose a settlement but I am not an expert. I do think from what others have said that these are looked upon positively by the creditors as its money now and reduced IP fees (I think), reducing the risk of lost money should the arrangement fail due to changed/unforseen circumstances. I think you may be able to offer a little less than what is outstanding if the full amount is not available.

An expert would be able to clarify.

Good luck

[Adam Davies]

Hi
Lily is correct,you should have a saving on IP fees so an offer of about 3k less than the total remaining payments should be accepted.
It is important to state that the loan from your parents will only be made if it is to be used to settle your IVA and that your disposible income willl be used to repay your parents each month
Regards

[Stewie]

Thanks lily + andy, its just that i already emailed my IP's office today with the same question and received a conflicting reply:

"At present creditors would not accept an early settlement offer unless you are able to demonstrate hardship ie. A major change in circumstances due to unemployment, ill health etc. If this is the case, please let me know and I will advise you further."

And the reason im on this forum is purely because i didnt trust this reply, what do you think?

[lily]

How does he know if he isnt prepared to put this to the creditors??? Its their money isnt it??? Or am I missing something here???

[Stewie]

Hey lily, I thought there might be a hidden agenda, maybe they would benefit financialy by doing everything in there power to make sure the IVA went the full 100 yards?

[lily]

Hi Stewie

It might depend on equity release if you had this in your IVA and they may want to wait to realise that, not too sure, but as youre living with parents...... I thought that if you wanted to make a settlement, your IP was bound to act for you and do just that. But I am not an expert just another person dealing with debts, hang around, I am sure someone with the knowledge will reply.

[MelanieGiles]

It is hard to advise without full knowledge of your circumstances or your IVA, but I feel that your supervisor is being unreasonable. So long as creditors receive at least the return they originally agreed to accept they will probably accept the variation - and for your IP to say no that effectively is denying them the access to monies early.

You can insist that the variation be put forward, but expect to pay additional costs to cover the additional work that your IP will have to undertake.

[Stewie]

Thanks for your help lily,

Hi Melanie, how would you suggest I approach/reply to my supervisor?
I dont think my parents could afford to pay what is outstanding + fees.

[lily]

No problem stewie, I hope you manage to get a positive result, your not trying to walk away from the debts but face them, I think that its a shame that you are met with a brick wall.

[MelanieGiles]

I would suggest that you try to arrange a face to fact meeting with him/her to see if you can find common ground. That will indicate that you are serious about the offer, and that you believe that it should be put forward on your behalf. It might mean a day off work, but it will be well worth it in the long run.

[Stewie]

I think thats a good idea, however im not that good when put on the spot, and i dont want to have a meeting where im being interegated and feel like he's just trying to catch me out. i would need to somehow prepare for it i think. im confused... my parents said the max would be arround 14k mark, and if i have a meeting with the supervisor before the end of the month the outstanding balance would be 17425... Would there be any point in having the meeting? would they even consider that amount?

[Adam Davies]

Hi
I presume that you do not have an equity release clause ?
If so your IP is being unreasonable.
Put your offer in writing,addressed to your actual IP
Regards

[MelanieGiles]

Hi Stewie

Yes they ought to. And if you get a little tongue tied in meetings, Paul Johns of Reviva has often said that he will attend meetings with people as an informal mediator. It might be worth giving Paul a call to see if he would be prepared to review your paperwork and help.

[Stewie]

equity release clause ? im asuming that would be if i owned a property, which i dont.

Also, i dont know whether to write to my supervisor, or try and arrange a meeting... im going to have to think this over.

Thank you all for your help. At least i now know that it is a possibility.