offering 30,000 pounds would this be enough?

[sharon.t]

we have completed our first year in an iva we want to offer a full and final settlement we have 15 creditors pay 52p in the pound. our debts are £75,000. Our IP payment/expenses is £5,000 has anyone any idea what our full and final settlement would be. We were thinking of offering £30,ooo would this be enough? many thanks

[MelanieGiles]

Hi sharont

I do not think that that will produce a 52p in the £ dividend, as it does not take account of the IP charges. These ought to reduce if you are going to settle early, and my advice is always try and increase the dividend payable to really tempt creditors. Why have your circumstances changed so much over the last year to give you the £30,000 to offer? I suggest that you get your IP to work out a figure for you to say settle at 55p in the £ early, but of course this should be based upon your current circumstances.

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

[jamesfalla]

Sharon.t

You need to take this up with your IP. They will understand all of the circumstances of your case and be able to advise you about how much of a lump sum you will need.

Most importantly, where has the £30k you say you have come from? Is it a gift from a 3rd party or an unexpected increase in equity in your property? It will be much easier for your IP to negotiate an early settlement with your creditors if the money is coming from a 3rd party as this money would not be available to the creditors in any other circumstances.

James Falla

Expert in IVA, Bankruptcy and informal Debt Management solutions for over 10 years.

For more information visit www.jamesfalla.com and visit my blog at: http://jamesfalla.blogs.iva.co.uk

[sharon.t]

hi again we want to remorgage early as we have equity in our property. We also want to get this IVa off our backs because we want to pack up and go to spain (where my Parents live) as we have job offer there.

[neverending]

Hi
Did you have the final year equity clause in your original IVA ??

[sharon.t]

Hi
Did you have the final year equity clause in your original IVA ??

yes we have got the equity clause we want to pay early if our IP will accept full and final settlement thanks

[MelanieGiles]

Then your creditors would potentially have got a much higher return had the IVA run its course for five years plus the equity release. If you want to have any chance of getting a variation accepted, you will need to demonstrate an inability to pay your contributions, together with a full equity release to the best of your ability. As you have only been in your IVA for a year, and really only wish to do this for personal gain, I think you may struggle to put a good case forward. On the other hand, creditors may just accept a commercial argument. The trick is to be seen to be putting your best foot forward at all times. What does your own IP say?

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

[gimmewine]

I may be totally silly here but why remortgage if you are thinking of relocating to Spain? Why not sell the property, pay off the debt in full and rent somewhere until you are ready to move?

[sharon.t]

[quote]Originally posted by MelanieGiles

Then your creditors would potentially have got a much higher return had the IVA run its course for five years plus the equity release. If you want to have any chance of getting a variation accepted, you will need to demonstrate an inability to pay your contributions, together with a full equity release to the best of your ability. As you have only been in your IVA for a year, and really only wish to do this for personal gain, I think you may struggle to put a good case forward. On the other hand, creditors may just accept a commercial argument. The trick is to be seen to be putting your best foot forward at all times. What does your own IP say?

hi melanie we havnt spoke to our Ip yet as we just wanted some feedback on the topic. Its always a good idea to know or have an i/dea in your head when contacting our IPs/ and to know what we are talking about when we see them!!many thanks sharon.t

[MelanieGiles]

Glad to be of assistance with this Sharon. As you say, forearmed is forewarned.

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