My IVA was approved today with lots of Adjustments

[London Coool]

My IVA was done through PAYPLAN and this was my proposal to my creditors

My debts are £64,000
HFC £26,000
HSBC £20,000
AMEX £5000
LLYODs £5,000
EGG £4,600
INLAND REVENUE /others £3400

I was offering a payment of £285 x 60 months (£17,100)+ £21,000 (75% equity) = £38,100 to my creditors.

Nom Fees =£2,500
Supervisors Fees=15% on all Asset realisations made to the arrangement.

My IVA was accepted by 84% of the creditors

I was asked to increase my payment to £293 x 60 Months (£17,580)

I was asked to release 100% (instead of the previous) of whatever equity I can release in my property during the 4th year based on the 4th year evaluation (instead of the evaluation I had as at this year). I was told that HSBC's Rep's TXD insisted on this adjustment.My present equity has risen to £28,000 after owning my property for 11 months.

I was asked to stop my company pension contributions or provide a letter from my company that its not possible.(I'm a Civil servant)

I was asked to submit my P60 Annually and 3 months payslip prior to that.

Is this a good deal or no deal ??.... before accepting it

[neverending]

Hi
It seems fair to me,The only thing is the equity clause and this may well be in the 60k mark in four years.However you will probably be only able to remortgage upto 80% of the proprty value[or less if your income is insufficient] so at the end of your IVA you will be debt free and, at the least, still have 20% equity in your property.
The pension clause and p60/quarterly payslips are fairly standard.
Go for it

[jamesfalla]

I agree with Neverending's assessment. The IVA is not a way of getting out of paying your debt, it is a way of paying back as much as you can in a managed and sensible way with light at the end of the tunnel.

As long as you can afford £293 per month then I say accept and get it moving.

James Falla

Expert in IVA, Bankruptcy and informal Debt Management solutions, with extensive experience of solving personal debt problems over the past 10 years. My book, "IVA, Bankruptcy and Other Debt Solutions" was published in 2006. I have made numerous TV and radio appearances including BBC1 News, BBC News 24, Radio 4 and Wake up to Money.

Visit my blog at: http://jamesfalla.blogs.iva.co.uk

[MelanieGiles]

Hi Londoncool

Before you say yes - get the exact wording of the HSBC property requirement,so that you fully understand the implications of what you are agreeing to. If you want to post it on the forum, I will be happy to advise you, but your IP should also be doing this with you.

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

[London Coool]

Thanx for all the advice given,i'm expecting the paper work by today so that I can exactly see through the small prints concerning the 100% equity release in the 4th year.

[MelanieGiles]

Make sure you see the paperwork before you confirm your acceptance. It seems to me that your IVA may have already been approved, before you have fully understood the terms of this modification. Your Supervisor can adjourn the meeting for up to 14 days, so take that time to make your mind up properly. It is your home that you are presently gambling with!

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