I have roughly 3 years payments of 192.00 a month and have just received 15,000 from a will and asked my iva relations person for a settlement figure and they've quoted over 24,000 which is 3 times what I still owe. How is this correct. I'd like some advice please.
You will always owe 100% of your original outstanding debt, plus any fees and statuary interest at 8% or so. The figure you received when your proposal was accepted is a minimum dividend to achieve. You will lose all of the £5k to your IVA and ultimately your creditors. There is no reduction in this total amount payable until the completion process where any outstanding difference to the proposed dividend and what you have actually achieved is then written off.
Last Payment made 04/12/14. Completion Certificate 25/7/15. IVA company GT. No Issues
The ampunt you agree to pay over during the IVA is not the new figure you "owe" -- it is what you agree to try to pay back, at least. As Merlin said -- you still "owe" the full original debt, plus fees and statutory interest. Fees are usually around 15% of the money paid in, plus around £2k. Statutory interest is 8% p.a, simple, calculated on the reducing balance.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
As mentioned people need to always remember that they owe the full amount of their debts right up to the end of the iva. Only then is any portion written off.
Inheritances often bring up the same issues during an iva.
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
Agree with others comments but just wanted to add if your total debt at the beginning could be cleared by your inheritance you could seek a full n Final offer and ask your creditors to remove the statutory interest clause.
I received inheritance during my iva and concluded ours through a f n f with statutory interest being removed. Creditors received 100% back, IP fees paid two years early ... it is worth asking, but not guaranteed
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
My short video here should explain it for yo. unfortunately you will have to pay the windfall into the IVA unless and until the total debts, costs and interest have been paid.
You might be able to ask creditors to waive their right to interest, assuming it was chargeable under your terms.
Hello
My mother passed away in August and left me £18,000 from her pension and half her house which is worth £350,000. Under the terms of my IVA I was required to pay in all inheritance until the account had been settled in full however......
I told my IVA company of my inheritance (as required) but made a full and final settlement offer at the same time.
The offer was £14,000 explaining that I had access to £18,000 now but would not get the money from the house for some time. I explained that I needed to keep some funds back because I needed cash for a house move and to spend on my car.
After months of waiting, they called me today to let me know that the offer had been agreed!!!
All I would say is exhaust every opportunity until accepting what they say as I did and I had a success!
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
