paying off iva early

[wobbles13]

i have been paying 278 a month for 22 months into my iva. (£6116) In the 4 th year of my iva i am required to raise 10k either with a remortgage or other means meaning i will have paid 27k which is my orginial debt. I ahve been offered to be given £13k my a relative to offer to my creditors to finsih my IVA. Is that offer realistic and what chances do you think there is of it being accepted.

[wobbles13]

not as yet because i need to submit it in writingand if it was not a reasonable offer i was going to decline he offer from my relative.

[MelanieGiles]

Hi Wobbles and welcome to the forum

On the basis of maths alone, your offer would seem a little low - a good marker for a full and final offer is always to pay in the value of future contributions and asset realisations - so in your case this would be approximatelyt £20k. Another marker would be to effect the same dividend as was originally pledged - so why not get your IP to provide you with a settlement figure.

Are your sure that your requirement to raise equity during the fourth year is limited to £10k - or are you required to have the property revalued?

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

[wobbles13]

if i was able to increase that money to 20k with help from another relative - what is the prcoess of putting an offer forward?

[Keepingmyheadabovewater]

hi wobbles if you call your ip and tell them that you wish to end the iva and you have come into some money your ip will call a creditors meeting and tell them theres a offer come in for full and final payment of this iva if they say yes its over but then it should not take more than 1 or 2 months to get your discharge papers once you have them you then need to call experian and update your credit file experian will ask you to send them the discharge papers to them to update and take it of your credit file

JOHN

[MelanieGiles]

Thr process is for you to approach your IP and advise that you have a third party who is prepared to offer you some money to pay off your IVA. Ask them how much would be needed, and then see if your funder is prepared to fund. If so, your IP will call another meeting of creditors to see whether they are prepared to accept an early settlement.

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

[Adam Davies]

Hi
Full and final offers seem to be favoured by creditors.I can,t think of one that,s been refused on this forum.
You need to make it clear that the money is a loan from relatives that will only be made if the F+F is accepted and that your disposible income will then be used to repay your relatives.
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

[wobbles13]

ok, that helps. Would i need to supply bank statements etc or is it a ssimple as contacting my IP and explaining what I have above.

[MelanieGiles]

There should be no need to produce bank statements.

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

[Oliver]

Talk to your IP and try and see if you can get a ball park figure which they feel will be acceptbale.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[wobbles13]

I have offered a figure of 16k to my IP as explained above, they have asked for my last bank statements and also an upto date valuation on the property, i cannot see why they would need this - is this routine?

[Lisa2009]

I suppose they want an up to date valuation so they can decide if its worth letting you finish early or wait till year 4 in the hope that the equity will be higher. You should check the wording of the equity releas clause to see if its estimated or fixed

[MelanieGiles]

The request for a property valuation is normal, the request for bank statements is less so but they obviously feel that they are needed. Your Supervisor can ask for any documentation that they feel is relevant, so try to comply with their request to the best of your ability, and you will get the full support from the Supervisor towards your early settlement offer.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[wobbles13]

The clause says that in the 4th year of the iva i will raise 9785 which is my share in the property, if i am unable to relaease that amount i will release the maximum i can. To me that says that the 9785 is the maximum? is that right?

[MelanieGiles]

Not necessarily - read through the terms of your IVA carefully in this regard, as it is more usual to offer a sum based upon a revaluation of your property.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp