Settlement Offer

[daveb]

I am just wondering if I were to make a settlement offer, would the figure I offer, have to be based on my proposal, or on my current contributions?

I currently pay £350 per month, however for the last 3 years on my proposal, the monthly contributions jump to £450. The £100 difference in contribtions would change my offer by over £3000.

[Adam Davies]

HI
You need to work your figures on the dividend that your creditors are expecting.
For example if your original dividend was 30p on a 100k debt your creditors would be expecting 30k.
If you have so far paid in 10k you will need to offer around 20k PLUS IP fees to date including a fee for a variation meeting,so if your IVA has been running for two years you will have nominee fees [2k?] plus two years supervisor fees and a variation fee to pay[2.5k]For this example you would need to offer 24k ish for acceptance.
All the above presumes that there is no fourth year equity release clause.
Sometimes your creditors will accept a lower dividend if a change in circumstances means that you are unable to continue with your IVA in it's original format
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

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]

I don't quite agree with that! If you have been able to increase your payments over the last year, that would have increased creditor dividend expectations, so I would expect you to offer on that basis and not the original.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Adam Davies]

Hi
Not sure if you have read the post correctly Mel
The increased payments have been factored into the IVA and the dividend will reflect this.Therefore to use the proposed dividend to offer a settlement is correct.
I can understand your point if the debtors payments have increased due to a payrise etc and will lead to a higher dividend than proposed,but this is not the case in the above post
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

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]

Not sure if either of us understand the post, but just to say that the settlement figute should be based upon the current rather than the original contributions.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[daveb]

Hi again,

I am looking to end my IVA early, as I will have to move out of my parents house this year. My outgoings will increase dramatically if I were to get a mortgage, leaving less for IVA contributions.

My proposal stated 23 payments of £350 and 37 payments of £438 = £24,256
I have made 20 payments so far of £350, (£7040)
So £17216 left to pay.

To make an offer I would take off IP fees of around £3500, leaving £13716. I have no other assets or equity release clauses. What would be a reasonable offer to settle early?

[MelanieGiles]

That would depend upon your disposable income after you move out, and where are you going to get the money from to settle. Also how would you fund the deposit to buy a property where you would need at least 15% whilst subject to IVA proceedings.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Adam Davies]

Hi
If you get the money from a third party[relative]you need to state that the "loan" will only be made if it is used to conclude your IVA and that all your disposible income will be used to repay this third party.
Regards


Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[daveb]

The offer would be made by my parents, once the IVA is settled, Im hoping to enter a joint mortgage with my partner, if the IVA is settled, and my partner would be placing the deposit.

If I were to stay in the IVA, my contributions once in rented accomodation or if we could get a mortgage, would probably decrease by around £100 per month. Therfore I thought a settlement would be more realisticly accepted.

I have contacted my IP, and his assistant told me that I would have to make an offer in writing, adn that they will not give me a suggested amount.

[MelanieGiles]

I would try the offer you have suggested then, and see what they say. Seems strange that they won't give you any assistance!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[daveb]

Thanks, I will try that. Although the figures above, are based on IVA payments upto June this year, as this is when My parents will have the money available to settle. Should I wait until then to make the offer, or try and get it resolved now? Thanks again for your advice.

[MelanieGiles]

Strike while the iron is hot - and sound them out now.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[daveb]

OK I will do. I am guaranteed around £12,500 from my parents towards my settlement, would this be a reasonable offer?