lump sum iva

[freelili]

Hi

Although this may be seen as jumping the gun.

If a will does not directly include grandchildren but its left to a parent to decide, is this legal when proposing a lump sum IVA

Also my car is currently eight years old, i realise that an IVA is against the name for 5 or 6 years so therefore obtaining credit for another car would be unlikely. Is it then possible to obtain a newer car (I dont mean anything fancy) that is likey to outlive this difficulty. I have also been looking at the state of my washing machine etc. We also have bare floors and very little else in the basic living department. (I am not suggesting being greedy in any way). I just do not know how long I will be unable to work.

Are lump sum IVA's srutinised in the same way or are creditors likey to look at whats on offer?

LILY

[MelanieGiles]

Frelili

Wills are wills, and generally what is stated in someone's will is legal - especially if a solicitor has been involved in drawing it up. I am not sure I really understand your question, could you be a bit more specific?

I think it would be perfectly reasonable for you to purchase a new car out of your inheritance - are you proposing your IVA before probate is finalised or after? Lili, if I were you I would be getting your IVA proposed now, on the basis that you will get the money at some stage over the next year. This will stop all of the harassment you are currently under. I have done this quite successfully for a few people in my time.

If you need more advice on this please post.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[freelili]

Hi Melanie and Thanks


Not sure how the will was drawn up (there was an actual will documnet)but brother and sister have seen a solicitor and have gone to court for some sort of swearing with a judge (i dont think any rude words were used).

I was asking if it would be OK to spend a little in the house just basic stuff, a newer car yes, using my presnt car and a little of the inheritence money. The house is only just bearable to live in and I am unsure how long I will be unable to work. Also to give something to each of my children, not a great amount, even though this was not written into the will. I realise that insolvency does not just 'happen' and it is my intention to propose the best possible return to the creditors.

I mentioned to my advisor about pre-proposing before the money is available and she advised against this at the moment, adding that it might be a good idea to wait until the house has been properly valued and is market ready. I wanted to have the IVA type legal protection from my creditors, as this is a major stresser. Although the DMP is still in infancy, my phone has gone fairly quiet, I am also not recieving the usual forrest of demand letters. Giving me a bit of breathing space to actually look ahead and beyond.

My debts are fairly newly aquired, being just or just over a year old with the exception of a couple of credit cards. I dont know if this might have any bearing on how much I would need to propose. The reason for this is I had to move house due to my sons' disability, the house was in a terrible state. I have recently tried to research lump sum IVA's but there is little if anything out there.

Cannot tell you how much I appreciate the advise



LILY

[MelanieGiles]

I would do it now - how long does it take to get a property valuation? You would propose on the basis of the money being available within 12 months. Creditors take the view that they are only going to get what your eventual share is, and that is down to outside market forces such as the property market, but it would stop the ongoing interest and the harrassment.

Don't see any problem in you keeping some money for essential items, but make sure this is all fully disclosed when you eventually decide to go for the IVA.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[freelili]

Ok. I will go away and have a rethink, the legal protection from creditors is appealing.

One more question.

I dont know if I can guaruntee a sale within the agreed time although my guess is it will sell. (its being valued on the 16th) What happens if money is not available.

well two actually

Would the IP costs be more given a possible 12 months to complete
or not if its a one off event.

Thankd again, still very grateful

LILY

[freelili]

what is the difference between a lump sum IVA and a Full and Final IVA

the latter was mentioned as a better route for me elsewhere on the internet. I thought they were one and the same.

Thank you in advance

LILY

[MelanieGiles]

Lily

They are both one and the same.

If the property doesn't sell within the 12 months, then the IVA can be extended. If I were to be your Supervisor, I would have provision for this written into the IVA proposal upfront.

Your creditors may not be as hard as you think. At the moment the collections departments are hounding you - unfortunately they are just doing their jobs (and I don't agree with the methods being used.) Once an IVA is proposed, you are then dealing with a different class of person - a commercial reviewer who is taking a decision as to whether accept something in return for the debt or nothing. And assuming the case is then accepted, you are only dealing with one person - the Supervisor of the IVA.

One of the real advantages I percieve of the IVA, is that all creditors have to make a decision on a day set in time. They have to say yes or no, and after that date you know exactly where you are. If the answer is no, well at least you have tried, and it won't have cost you anthing as hopefully you will choose a "no win, no fee" insolvency practitioner.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[freelili]

Thank you Melanie

I have been in touch with my brother and he has offered to lend me a sum, I have just been testing the water today to see what other people think and you would'nt believe the flannel I have had. I was told by one to enter a 5 year, to include my sons' disability and then to reduce the balance when more money is there, another offered to 'fix' the figures and wanted to charge me 90000. Yet another said that HSBC do not insist on 40p in the pound and I would only have to pay 25% of my total debt. I was also told to go bankrupt as I simply do not have enough to be considered (that was after he was challenged). If I were to wait for the money I would have enough to pay it off in full, with interest. Anyway thanks for your advice I really appreciate it. Its a mine field out there! I have to avoid bankruptcy and I do not want to enter a 5 year IVA.

LILY

[MelanieGiles]

Is there a typing error on those fees! I hope so! Even at £9,000 that is extremely high. HSBC have a 40p dividend in the £ which is definately not negotiable. And creditors will not just accept 25p in the £, when they have to be told about your inheritance.

Lily, much as I like to encourage people to take a rounded view on advice, I think you are running the danger of trying too many avenues.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[freelili]

I just want to get out of debt and want to propose the best IVA I can. I dont have the stress of worrying about it not being accepted, if it fails, I only have one option left and I do not want to go there, simply because it is against my mothers wishes. I know that HSBC will not settle for less than 40p in the pound, I would offer more if I am able to.

LILY

[freelili]

Also there are too many uncertanties at the moment and I want to know a little more about the amount I will have available. The creditor hassessment is a major stressor, and your suggestions answer so many of my questions or should I say dreams. My brother was just trying to help to ease some of the burden. Its propably better to wait until the picture is a little clearer before proceeding. I also wanted to say I have been to hell and back to get this far, and lost so much along the way, I am kind of scared to fall at the final fence.
I know I signed on the dotted line and I hold my hands up but I never expected to be where I am today.

I really appreciate the advise you have freely given, I may be in touch with you soon.

LILY

[MelanieGiles]

Lily

I am here to help whenever you need to discuss anything, and I cannot wait for the day that you send that post that you are debt free! Champagne will be on the cards, and your creditors will be happy as they will have been paid a substantial sum.

Keep remaining positive - your strength is infectious, and also helping a lot of other of our members at the moment.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk