Questions

[Aaron]

Hi...I just have a few questions which I hope someone can help with please.

1) Eversheds keeps writing to me saying they now own some of my debt...about 3 of my 6 lenders now. What's this all about?

2) Is there anyway an IVA can be removed from your credit file....I want to buy a house at some stage soon as currently renting.

3) I have been in my IVA for 14 months and have paid back £4,200. My total IVA payments was for £16,800 over 60 mmonths. My IP fees are £2500 initial fee and £600 per year, both plus VAT. I wish to make a final settlement, through a relative...anyone have an idea how much they would need to pay as full and final settlment?

Thanks for your help!

[Aaron]

Oh and in respect of 3 I owed £23,500 in total to my creditors.

[kpw]

Hi
You will probably have to find approximately the balance £16800 less £4200 =£12600. But you should ask your IP for a settlement figure which will give the creditors their original dividend and include the IP's costs. He/she will also want a letter from your relative saying that the funds are avaiable. Explain your circumstances to the IP and see if they are likely to support/recommend your offer and then they can arrange for a variation creditors meeting.
best of luck

[Aaron]

Thanks KPW...I will ask my IP tomorrow. Are you able to answer 1 & 2 at all?

Thanks very much!

[catullus]

Hi

1 Eversheds (solicitors) act for a company called Max Recovery who buy debts off banks where the debtor has gone in to an IVA. They have no better claim on you than the bank that lent you the money so there will be no effect upon you, you just have a different creditor for the same amount.

2 No.

3 Without going in to the detail (working on the assumption that you need to offer the creditors the same dividend and knocking off three years of IP's fees) I reckon that you'll need to offer about £10k

Hope that helps

[kpw]

yes
Eversheds will buy the debt off your original creditors. They can write to you to inform you that they now have the debt but it is just for information. Your IP will now deal with Eversheds on that debt.

2- Your details can be removed off insolvency register once the iva has been settled i.e after ip has issued completion statement which is usually about 3 months after final distibution of dividend to creditors.

[mikebdomain]

Hi Aaron

1 and 3 have already been answered...

2 No you can not remove the IVA from your credit file; it will stay on your file for six years. This will not, however, stop you from obtaining a new mortgage product, and in most cases the IVA is ignored after two years.


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[Adam Davies]

Hi
Just to sum up all the answers for you
1]It is common for debts to be sold on and it will not affect your IVA.It may work to your advantage as the debts will almost certainly have been purchased for less than the dividend that you will be paying.
2]Once your IVA is concluded it will be taken off the insolvency register but will remain on your credit file for a total of six years from the date that it first started.As Mike states it will have little effect on your ability to take a mortgage.
3]Remaining payments less three years IP fees plus vat and then add on the cost of a variation meeting[£500 ish].So I would agree with the 10k figure.
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

[Aaron]

Thank you everyone for your help! Much appreciated!