reasonable offer

[creditcrunched]

hi can anyone give advice please i have been in an iva since june 06 and have paid into it £17,000 the total amount i am to pay after 60 months was £34,325 there is 32 payments left to pay at £555 and an equity release of a fixed amount £1,000 so i have approx £17,000 to find my ip has told me this is the amount i need to offer which would pay the dividend in full i was just wanting to know if there would be less fees etc or do you have to pay the remaining balance my ip is hard to get hold of and doesnt seem interested in my f+f offer

thanks in advance

[ianmillington]

Okay, I'm guessing that your IP is saying to you that you need to introduce that money to bring your IVA to an early close without a variation, but if you offered less he would need to call a meeting? Has your IP said anything along those lines?

Whether the fees would go down if you offered a full and final on the same terms is dependent upon the manner in which the proposal (as modified) provides for them to be calculated. If the fees are a percentage of realisations the answer is clearly no.

How do you intend to find the remaining balance, if you don't mind me asking? This is very relevant.

[creditcrunched]

hi thankyou ian for a quick reply my father has retired and has offered to loan me £10,000 which i will pay him back the problem is i am having marrage problems (the thought of living in a bed sit on my own living on scraps while my wife and kids are in the house makes a length of rope more appealing )and the iva and this is just too much to cope with and 32 people have been finished were i work with more on the cards (construction)i wouldnt like to go back to square one if i got finished also having fought for nearlly 3 years with the iva .do you think it would be a better idea to try and hold on for a few more months so the 555 i pay a month would build the pot so the 10,000 would look better sorry for all the questions just in a bit of a mess

[MelanieGiles]

If you are on the verge of separation, and will be moving out of the family home into rented accomodation, this is bound to cost you more than you are currently paying and therefore you have good grounds to apply for an early settlement.

Personally I would instruct your IP to offer the £10,000 on grounds that you are unlikely to be able to pay the £555 for too much longer given the circumstances.

[ianmillington]

Agreed, although you may need to be able to show the following:

1. That your disposable income will reduce to a point at which it's unrealistic for you to continue to make the payments and

2. That there's not a whole load of equity in the house (that a Trustee would be able to get his hands on if you followed the alternative course of bankruptcy).

If there is no equity then it might be worth a complete re-think, as Bankruptcy (which wouldn't need your father's £10k) might just be a solution that would work for you.

[David Mond]

I don't believe the bankruptcy route is an appropriate option. Whilst your circumstances have and will change in the future any decent Supervisor (IP) will put foward an offer and should articulate in the letter to creditors all the facts. The cost of this should not be excessive and should come out of the pot. There will be savings in future Supervisory fees (depending what it says in the original proposal) so get that offer made as Melanie has said. Good luck.