Settlement offer

[carolina]

I have an IVA since Feb 2016 is due to finish on Feb 2021. I am currently paying contributions in the amount of £70 per moth. I contacted them because I wanted to get my IVA settle early because my partner offer me to help me with that. However when I contacted them and told them about it, they said to me that I have to pay minimum £900 if I want to have the IVA settle earlier. This does not make sense to me because if I continue paying my contribution every month I will be paying a total of £630. I don't understand why we need to pay more. When question them they said that the £900 was the remaining balance of £630 plus £300 to cover admin fees. Does this sound correct? Could somebody please share some light? Many thanks

[kallis3]

You do need to pay fees as a variation meeting will have to be held in order for the creditors to agree to this. At least you will be finished. Which company are you with as a matter of interest.

[carolina]

I am with creditfix. I read in the in some forums that some people manage to settle offering less of what they where supposed to paid. The figure seems to high for me. Thank you for your advice

[DJ92]

It does seem to be the case that you can generally offer slightly less than the sum of remaining payments to close the arrangement. However, with fees added, I imagine it would be difficult for you due to the arrangement nearing completion anyway.

[Marty171]

itll be because the IP will need to take a fee like you've said of £300 approx. so if you offered £630 the 9 payments left at £70 the creditors would only see £330 which may not be worth it seeing as your so close to the end of the term as it is.

if i was in your position i would carry on as normal, it'll be February before you know it.

[Foggy]

Yes, many offers are accepted below the amount left to pay -- but, in your case, you are paying so little each month that the payment is all eaten up by fees anyway. Normally a payment under about £80 would not be accepted these days, due to increasing fees -- and CF charge some of the highest fees anyway !

Marty is generous in his calculations --- with an offer of £630, the creditors would see around £200. To be honest, by the time the offer would be processed, you will only be saving about 6 months ... not really worth the hassle.

[carolina]

Thank you for your advice.
The reason why I want to have the IVA settle early is because I have received a job offer in the financial sector and they will carry out credit checks. I was advice that it was better to show that the IVA is settle rather than still pending.
Is this case? What do you think?
Thank you for your time

[Foggy]

The IVA will show on your credit files for 6 years from the start, even if closed early. Yes, it will show as completed, rather than active --- but time saving is not that much.

If you put the offer in today, for instance, it could take 2 months for the meeting, so that will be mid-july, then maybe 2 months to actually close, so mid-September. After this it will take 3 months to remove the IVA from the Insolvency Register, so mid-december ...THEN it will show as completed on credit checks.

As you have already been offered the job, your credit files are not likely to change in time to beat any credit check.

[carolina]

Thank you for that. What do you think I should do? Should I not accept the Job?

[kallis3]

I'm afraid we can't help you there, the decision will have to be yours. Are the company aware of your IVA? Is it worth you telling them?

[Foggy]

Thank you for that. What do you think I should do? Should I not accept the Job?

It could be that the new company would be happy to give you the job, even with the IVA ... the conditions you have been given say that they should be informed, as I recall, not that it is a definite no.
If I was in your position I would be open with the company and ask them if the IVA will disqualify you. At least you will know where you stand before giving up your old job.

[carolina]

They are not aware of this. I spoke to a solicitor and he advised to get the IVA settle as soon as possible. I talked to my IP and they told me that the process will take about 2 to 3 weeks they didn’t mentioned it could take months. So I am very confused now.
Thank you

[Foggy]

They are not aware of this. I spoke to a solicitor and he advised to get the IVA settle as soon as possible. I talked to my IP and they told me that the process will take about 2 to 3 weeks they didn’t mentioned it could take months. So I am very confused now.
Thank you

Most IPs take 2 or three months to get a F&F offer through ---CF have done it faster, but not every time. Then, again, most firms take 2 or three months for the completion formalities and, again CF can do it faster. The Insolvency Services invariably take three months, from formal completion, to remove you from the Register --- CF have no control over this and then a few weeks to filter to the credit reference agencies which provide your credit check --- again CF have no control over this.

The solicitor is, like us, giving advice blindly. Everything depends on the new firms policies regarding IVA's. If, for instance, their policy is to simply want to know about it, then ther will be no problem. If their policy is that they will not accept an IVA during the past 6 years, then finishing early will make no difference.

The only people who can give you a definite answer are the firm offering you the job.

[abbiesmum2003]

I understand it must be confusing when IP tells you one timescale but forum tells you something else.
Foggy is very knowledgable and accurate with his advice.
From personal experience it takes a good few months to even get the variation meeting arranged to ask rhe creditors before you even get to pay it across and get certificate.
As Foggy said even if you offered money today, creditors need 28 days notice to hold meeting then a few weeks to get certificate issued (and creditfix are one of the fastest) then its 3 months before iva falls off the register. So They will
likely do the credit check before tjat process completes.
Perhaps should mention IVA and see what they say. Explain its almoat over ans youve learnt from experience. Many people lack awareness and understanding of IVAs so may not be sure at first what it is/means.
But I dont think ending IVA at this stafe will be worth the hassle.

[norman]

If its of any help I paid F&F over 7 months ago and have still not received a completion certificate although just been told last week that I will receive it in the next 4 weeks so it does take a long time depending which IVA company you are with .