made my final payment in October!

[dg1980]

Hi

I've read lots of threads on this forum and have had most of my questions answered, I'm still unsure on a couple of points though.

I am two and a half years into my IVA and haven't missed any payments but I've recently had to move house as I moved to a different office with work. I am now finding it very hard to keep up payments so my parents have offered to lend me some money to pay the debt off in full.

I was wondering is it best to ask my IP to contact my creditor (my debt was bought from my original numerous creditors around a year ago so I now only owe 1 company) and ask them how much they would accept; or should I ask my parents how much they could lend me and ask my IP to offer this amount to my creditor?

Also, I'm not sure if I'll be able to borrow the full amount I owe, would there be a chance that the creditor would take less?

I rang the company that arranged my IVA and spoke to somebody about this but they were not very helpful. Am I correct in thinking they would have to put any offer I make to the creditor? (I get the imression that they don't want me to finish early as they would lose out on IP fees [:I])

Any advice would be much appreciated

DG1980

p.s. I was also wondering if there are any banks that offer a cheque book to someone with an IVA as paying bills is proving difficult...

[MelanieGiles]

Hi there dg and welcome to the forum

I assume that your only creditor is Max Recovery? If so, they are a very supportive creditor of early settlements, and I almost question the need for a formal variation meeting with just one creditor - I would probably approach them directly to avoid the additional costs and bureacracy involved - interesting to see what Catallus would do!

You must firstly find out how much your parents would be able to lend you, as this is the first thing that your IP will want to know. Then ask the IP to work out a settlement figure for you, based upon you paying the dividend which was originally offered to creditors. I am sure Max will be delighted with this result, and you can move on debt free in your new job.

Your IP is obliged to put your offer to creditors, but not obliged to recommend it. Thankfully, Max are an extremely commercial organisation, and I am sure that you will be successful if you are able to pay them the original dividend.

Can't help with the banking issue sorry, but other experts will probably post soon.

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

[catullus]

You have to make an offer to your creditors to settle the IVA rather than asking them what amount that they will accept.

In theory the Supervisor should communicate any offer that you wish to make to your creditors but, in practise, your Supervisor needs to agree to the amount of the offer because he will be expected to comment as to why it is worthy of consideration. If the IP doesn't support it then it probably has little chance of being accepted.

I rather doubt that the unhelpfulness of the person that you spoke to was caused by the motives that you suggest. Probably more likely that they got out of bed the wrong side on the day or they didn't know the answer. (no excuse for either)

You probably don't need to offer creditors the full amount that you were promising in the IVA. Factors to consider are lower IP fees caused by a shorter IVA,the certainty of the offer you are now making and the risk that your IVA may fail, particularly if you are finding it tough going at the moment.

I suggest that you establish with your parents the maximum sum that they could lend and then contact your IP to ask his/her advice as to the amount that you should offer. Be prepared to discuss the factors that I have mentioned above in considering the amount to offer your creditors.

Do insist that you speak to your IP about this and don't be fobbed of with your casr worker. This is an important step in your IVA and you should have access to your IP. I'm growing a bit tired of hearing stories on this board about IP's who will not speak to debtors. That sort of attitude is entirely unacceptable.

[catullus]

We nearly agreed!! Melanie makes a good point that with one creditor your IP could just pick up the phone and thrash out a deal.

Other than that, we're pretty close.

[Adam Davies]

Hi
I,m not aware of any bank that will offer a cheque book to someone with an IVA.However you should be able to obtain a debit card with a basic account and most bills can be paid over the phone/online with this.Your last resort is the good old postal order that now looks like a cheque but you will pay a fee for this.
With regard to your settlement offer add up your remaining payments and knock off 2k.This will be a good ball park figure.
Regards

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

[dg1980]

Thanks for all of your advice, much appreciated! I'm going to write to my IP today and will let you know how I get on...

[dg1980]

Okay, i've written to my IP and they got back back to me straight away. i explained how I've moved house and am having trouble keeping up with the payments and they re-assessed my outgoings against my income. They agreed that I would find it hard to make the payments and have put my offer to my creditor (Max Recovery).

I'm now nervously waiting to find out whether they accept...

I couldn't quite offer the full amount they would have received even discounting the IP fees but it wasn't too far away, it will be a huge weight off my mind if they accept!

[dg1980]

woo hoo! My offer was accepted, made my final payment in October! Thanks for all your advice, much appreciated [:)]

[Adam Davies]

Hi
Great news and strenghens the point that creditors do like an early settlement
Regards

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