offering my creditors a full and final settlement

[sm1]

I am currently in an IVA and have been for 2 years.I now think I have sufficient equity in my property to offer my creditors a full and final settlement but am unsure as to how much they would expect I have asked my IP company but all I was told was to submit an offer they could not give me a figure.
My original debt was for £38000,I think in my arrangement,it states the creditor asks for 32p in the pound.The first year I was paying £331,following year I have been paying £457.I was wondering if a figure of around £15000 would my creditors accept and what is the likelihood of getting a remortgage

[MelanieGiles]

Hi sm1 and welcome to the forum

First of all did your IVA proposal provide for an equity release at any stage during the period of the IVA? If so, then you will have to have good reason to want to effect this early rather than carrying on paying your contributions and then raising the money at the end of the term.

If your property was excluded, work out the value of your outstanding contributions - approx 36 months at £457 = £16452. You can take some discount for the IP fees which will not be charged so I feel your £15,000 is in the right ballpark.

What is your house worth now and how much equity do you have. It will be fairly easy to seek a remortgage - I know of companies which will now lend 95% loan to value to persons subject to IVA proceedings.

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

[sm1]

Hi Thanks for the quick reply,my property is worth around £80000 and my original mortgage with early repayment charge is around £61000,just hope I can get the remortgage as my property is shared ownership of which I own 40%,I believe there is an equity release clause,in which it states in yr4 to try and get a remortgage to release any equity

[MelanieGiles]

With the equity release clause already provided for within your IVA, it is unlikely that creditors will agree to an early release simply to finish off the IVA - when they could get the benefit of your ongoing payments for the next couple of years and then equity release.

This may be possible, however, if you are suffering financial hardship and are no longer able to afford the repayments. You really now need to seek specific advice from your Supervisor.

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