Paying out early

[monday s expert]

Okay - will try and speak to them next week.

One more question do they have any leeway in reducing my payments without going to a variation meeting? - which of course would mean less money in the pot from more IP fees and posibly mean it could fail in the long run or indeed I end up paying a lot more

- thanks again
Monday's Expert

[MelanieGiles]

No - they may be able to offer you a couple of months at lower payments, but only the creditors can agree to an overall reduction.

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 Mondays Expert
I think that as you have no assets and are clearly struggling[full marks for keeping the IVA up to date]
and with the baby due soon it,s time to sort this once and for all.
You would need 15k to offer the same dividend in a F+F that you were originally offering[27p].However if you could raise maybe 10k then it would be worth asking your IP for a variation meeting and to offer this as the alternative for you will be bankruptcy and a nil dividend to creditors.
Bankruptcy is not as bad as it seems and will draw a line under your debts.
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

[monday s expert]

Thanks Andy and Melanie,

Rather than "the head in the sand" attitude I have at the moment - I will speak to my IP early next week - when I am calmer - and lay "my cards on the table"
and see what we can do - I hope they can come up with a compromise... BR does seem so final..

I have paid nearly £6000 already so another £5000 would mean £11000 out of the full £16000 odd (closer to £17000)

Would 20p in the pound be so bad for "them" or could they just not accept it on principle!!

Cheers Monday

[Adam Davies]

Hi
It,s the Ips fees that have to come out of the pot that will make your figures alot less and it will mean that you will probabaly only be offering the 5k to your creditors,however this is still more than in bankruptcy so you never know !!
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

[monday s expert]

No joy - the IP ( well the helper on the phone) says that they won't do a variation metting that offers less the 25p in the pound.

So looks as if I will enjoy the summer , wait for Baby to be born, thank my friends in the Uk for their support over the last 2 yaers etc, and then go to Australia - using the money that MY family offered to help out with for Air tickets and possibly a holiday on the way.

They can then sit around and think of the 20 p in the pound they would have had if they took my offer!!

Cheers ME

[MelanieGiles]

It is not your IP's choice whether to put forward a variation, but yours. Insist that this be done if you still feel that you would like to conclude things properly. At the end of the day your creditors will decide, not the IP!!! But do accept that they may not be prepared to recommend the offer, but that does not mean that they should not put it forward for you.

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

[monday s expert]

Thanks Melanie,

Looks as if I will have to do a lot of the "paperwork" myself - in so far as write up everything( present the story completely rather than the wish wash that variations seem to be -from what others have posted on this site. that way the "IP helper" just rubber stamps it.
I mean fixes it up to make it presentable.

Is there any advantage in calling Eversheds/MAX Recovery myself and sounding out - what they may accept?

A friend at work has also suggest the name of a Financial adviser who specialises in "breaking IVAs" (his words not mine) But feel that may be a case of out of the "fry pan and into the fire". But then again if I pay less in the long run??

Thanks again Mon Exp

[MelanieGiles]

I would simply recommend that you make appropriate representations to your IP regarding your offer, explain why it is being made, and why you feel that you cannot make the payments any more, and then advise that you wish it to be put forward to creditors. I suggest you make it clear that you accept that it may not be issued with their recommendation, and that you accept therefore that creditors may not accept the offer. In such case, you will need to be prepared to fund any addiitonal costs the IP will incur in putting forward your revised proposals.

I cannot see any advantage in you contacting Max Recovery directly, similarly I see no place in the market for the sort of firms your friend is advising you use. Stick to your own IP, and I feel sure that you will get the result you are looking for - and don't forget it is the same creditors that both advisors will be dealing with, and they are unlikely to listen to some unqualified "financial advisor" instead of your IP!

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

[iva_squirrel]

Melanie is right. You should explain to your IP why you cant make the payments and your wish to present a variation.


Regards,
Michelle P.

[monday s expert]

OKay - against my better judgement - BUT in the interest of getting clear and having a free start when the baby comes, I have agreed with my IP helper to offer my creditors 25p in £ so the meeting is early in August - please wish me luck.

Luckily my family is Australia have been able to come up with the money!! I think my father is totally disgusted with me for getting into this situation but that's the way it goes. I think he wanted me to go Bankruopt to teach me a lesson - but my mother talked him around.

thanks for all your advice

Monday's Expert

[Adam Davies]

Hi
Well good luck and please let this forum know how you get on.
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

[MelanieGiles]

Our wishes of good luck to you go without saying, but do let us have updates of what is happening and of course the outcome.

G'day!

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

[monday s expert]

Good News - of sorts

Variation meeting held last week and it would seem the creditors or people who now hold my debts "bit my hand off" for the 25p in the pound offer - only one didn't reply. So now I have to start paying back Dad and My brother rather than IVA - once the peperworkis finalised etc.

Monday's Expert

[MelanieGiles]

Hey - as far as I am concerned this is another great success story for the forum:-

For you - because you may not have have the courage to pursue your IP without the support of forum members

For the creditors - because they have the certainty of some form of repayment, instead of the uncertainty of a failed IVA with a subsequent bankruptcy providing no return at all.

Well done - and I am sure that you will find your relatives much easier to deal with in the event that you have a "bad month" and cannot make your loan repayment.

Good luck for the future!


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