settlement and payments

[Buddagirl]

Hello, Been a lurker on here for ages and Im finally making my first post.

Today my partner has sent a letter to my IP offering a final settlement for my IVA that Ive had for three years. My question is, do I continue to pay my IVA as normal or do I stop paying it now the offer has been sent in.

I really hope it gets approved!!!

Thanks for reading

[Michael Peoples]

It should not take very long to prepare a full and final offer so hopefully it will not become an issue. Without knowing what your partner offered it is hard to say but I would suggest you contact your IP and advise that the offer will be reduced by each additional month you have to pay as you have to pay your partner back. This will mean that the IP can calculate the dividend exactly when sending out the offer. Hope it works for you and good luck.

[Buddagirl]

Thanks for your reply!

when I started my IVA it was agreed I would pay £236 for 60 months totalling £14,160. My salary increased and I now pay £300 each month. Ive added up how much Ive paid and so far it is just over £10,300. The settlement offer is £3,800. My IP said £4k would be ok but due to our washing mahcine breaking we had to use £200 of his money to buy a new one! Do you think my offer will be accepted? Im so nervous about it. I have found my IVA a very distressing time.

Many thanks

[Michael Peoples]

That sounds like more than a fair offer and creditors would be mad to refuse it. The £200 for the washing machine will make no difference to whether the variation is accepted as £3,800 should still achieve or even better the original dividend on offer.

Your partner seems a very generous person and hopefully you can put the IVA behind you and get on with your lives. As to whether you continue to pay it might be an idea to send the £3800 to your IP so he/she can close the file down quickly but also you would then be starting to pay your partner back.

Keep in touch and let us know how you get on.

[Buddagirl]

When I first approached my IP about a settlement my advisor said £5k should do it. I then told her that I would only be able to offer £4k and she said that should be fine too??? Is this so they get more money for themselves?
Either way I shall keep you posted. The letter was posted yesterday so I should hear something soon. Fingers crossed!

Thanks again.

[Michael Peoples]

She probably felt she could guarantee £5k being approved but £4k probably would be approved. It is possible that the IP firm would make more money if the offer was higher but that is not a justifiable reason for asking for more.