Hi. My husband and I have an interlocking IVA. We initially owed around £40,000 and have paid 34 monthly payments of £128 plus around £7000 of ppi claim payments. Documents we had when we set up the iva said they predicted to raise £7,680 which I guess is the £128 x 60 months. We have just sent all of our docs to Knightsbridge for our review (due beginning of Dec) We will then be entering the start of our 4th year. My parents have kindly offered to help us out of the iva early with gifting us some money but I wondered if I could ask some advice? My husband has recently started a new job where he can potentially earn more by bonus so I have declared this in our review docs. We are now unsure how much our monthly payments will go up by until we get our review back but we desperately want to get on and offer a full and final payment. Can anyone help us on what to offer? We have a house which has gone up in value since the start of the iva and the 12 month extra clause applies. Am I right jn thinking we would need to offer our monthly payments x by 3 yrs (the remaining time left)? Many thanks.
Yes, you are broadly correct, assuming the 12 month extension applies ( if you have more than £5k equity). So you would be looking at an offer based on £4608.
Considering that the creditors (and IP ) will be saving some in admin costs over the three years (plus the "bird in the hand" factor) I would offer £4,000 initially.
As the new bonus payments are not regular income they should be dealt with as they are paid ( monthly) under your "extra income" clauses and not affect the regular payment, so I wouldn't bring them into any offer.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I agree with Foggy. Any prospective bonuses should not be factored into an I&E but if the base salary has increased then the surplus may have too. Try to get the offer agreed in time for the annual review as the report could then be combined and speed things up.
Thank you both for your replies. The way knightsbridge worked my husbands monthly bonus before was by averaging his 3 monthly pay slips which they came to an agreed amount of him earning £1700 a month. We have now sent 3 payslips for the last 3 months showing him earn £1500 one month then £1900 the next 2 months so I am worried that they will put up the monthly payments making the £4000 offer seem small. Would it be best to offer a higher amount to make it more likely it will be accepted? Thanks.
Never offer a higher amount as they will take it! Always offer the lowest sum and don't tell them you can afford more. Only if they reject it or modify it asking for more should you then consider increasing the offer.
Even with my husband earning more do you think that it is likely they will accept the £4000? I'm sure lots of people have asked this and sorry to ask again but if we write to them telling them we have a full and final offer etc how long does the process take from then? Thanks
If you speak to your IP they should be able to send out the variation with the annual review which will reduce the paperwork and speed up the process. The income and expenditure in my opinion should be based on the basic salary and the bonuses dealt with under the 10% 50/50 rule so the surplus income may not have increased by much.
Update, have spoken to Knightsbridge they are are sending out a settlement figure and docs. They say we need to look at it then all and then send all docs required back with our offer. Then the IP will see if he/she thinks it looks likely to be accepted if not they will not put it through. Does this sound right? Sorry for all the questions!
A settlement figure will not be the same thing -- this is usually the amount required to pay back the full debt, plus fees and possible statutory interest, which will be much higher than a F&F, the amount of which is for you to decide.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
A 'settlement figure' will be the amount to pay EVERYTHING off in FULL. This is not what you need. The IP will not be able to advise you on how much to offer - you need to make the offer and see whether the creditors accept it. You won't know until you put forward the offer.
