Hi, can anyone tell me if myself and my husband can take a loan out to pay off our individual iva`s.
We will pay 14k jointly over the next 4 years and 11 months of the iva and are in the 3rd of 7 years as it has been extended .
What should we offer if we can either get a credit loan or loan from family? . my husbands monthly payment is 99 pounds and mine is 125 pounds, thanks for any help
You are unlikely to be able to get a normal loan whilst in the IVA. Your family can offer to pay it off for you however. You should offer as close to the original dividend as possible.
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
Excuse my ignorance on this subject, but when you talk about "offer as close to the original dividend as possible", what does that actually mean ?
Is it if when the IVA started, the amount that the creditors are prepared to take on completion (i.e 60% of the original debt (that's the dividend - and therefore they have agreed from start to write the other 40% off) ?
If that were the case and you had made all payments to end but had only paid off say 50% of the agreed 60% of debt, that you would have to then find another 10% before it could be completed/closed off ?
When you start an IVA you will be told how much in the pound your creditors are likely to receive. If you can pay in more and increase this dividend then brilliant.
If someone is going to offer to pay off your IVA early, then the closer to the original dividend forecast, the more likely it is to be accepted.
You will always owe the full amount of your debts until the end of the IVA and once it is completed the rest is written off.
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
Jan,
Thanks and sorry if it was a dumb question.
So come the end of my IVA (not had the details through yet of mine hence the questions), if I were told a dividend of 50p in the £ would be what they could expect over 5 yrs, come the end of 5 yrs and there was a shortfall still, then they would either ask for equity release or add another 1 yr max ?
In the event I could not get equity release (i.e my building society would say I still had insufficent disposable income to warrant a mortgage increase of any kind), then it would be the extra year option and that would be it (they can't keep adding year after year I mean - it's 6 and then end)?
If you have a house, then an equity release clause is standard these days.
We have to try and release £28k when the time comes - no problem with the equity but we won't get a remortgage so it will be an extra 12 months and then completed. There won't be an extension.
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
I know mine will be six years - won't be able to get a remortgage due to age for one thing!
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
Thanks jan, I will certainly be doing this. Every time I work extra hours to get the kids new clothes or if something breaks and it needs replacing my iva company want half for the creditors, really hard with price increases. We will offer around the 14k mark and pay family back. If we could get a loan to pay it back is it allowed? My problem is not budgeting for the iva but there is no allowance for replacing things that break. At least with a loan from a company they don't ask for more every month if you work to say replace a boiler etc.
If not family will pay, just don't like to accept if I don't have to, but can't go on like this, thanks for any help, karen
Jan is right to say that your lump sum offer should be as large as possible. However, there is every possibility you will be able to offer far less than £14k and still get your settlement approved. At the end of the day, your creditors are getting the benefit of receiving their money early without the risk of your IVA failing at a later date. s such, they will be prepared to pay for this benefit by receiving less from you.
My suggestion is that you offer perhaps £7-8k and see how they react. You can always increase the offer later but you will not be able to reduce it.
In terms of being able to get a loan, I think it is unlikely that you will be able to borrow from a bank at present as your credit rating will be poor. You will probably need to borrow from family and then pay them off as and when you can.
H james, Thanks so much, will offer the 7 to 8. I tried this before and was told by the iva company to offer more like 10. I was under the impression the iva company did not have to tell creditors I had made an offer if they thought it will be rejected. If this is wrong I will phone back and tell them to make the offer and see what happens. Thanks again, karen
You'd probably save on IP fees as well if you paid it off early.
Your creditors will ultimatly make the decision as to whether to accept your full and final offer. I would have thought your IP would be duty bound to put forward any offer you make to pay it off early.
We're willing to wipe the slate clean, give you a fresh start. All that we're asking in return is your cooperation.
These days - in my experience - creditors are very unlikely to agree to a settlement giving them lower than they were originally promised, unless there has been a change of circumstances which would have affected that sum being returned. Try a lower offer by all means, but don't be too disappointed if it is turned down.
Karen - are you aware that your ip can allow you to defer payments for things such as boilers, cars and ovens going wrong? This can either be a payment break or a reduced payment to allow you to repair or replace whatever is being troublesome. This doesn't help with the offer but might help if you are having a problem at the moment. Good luck with your full and final.
