I am currently 18 months into my IVA. My original debt was just over £39000, and over the term of the IVA, I am due to pay back around £16, 800.
I have just had my house valued, and have a large amount of equity in it, and I'm happy to sell the house. I have spoke to Freeman Jones today and they inform me that I have around £37,500 outstanding.
This can be covered by the equity and will leave an amount over for relocation, fees etc.
I would like advice on whether I can make a full and final offer based on that figure, considering that it would finish the IVA 3.5 years early and get the creditors a large amount of money back? Or will they just demand the whole lot?
If you are willing to sell the house I would approach the creditors with a lower offer. If they refuse simply state that you won't sell and they can wait for another few years for less money.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
If you sell up anyway, they WILL want the lot. But if you are, as far as they are concerned, selling up just to conclude the IVA early, and won't sell if the offer is refused, then they have to consider whether to get a larger lump now, or wait out the full term for less return.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Just a thought ... remember to couch the offer in terms that, if refused or if the house doesn't sell within a given time frame, the IVA will continue as before.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
You could also look at raising money from a secured loan as full and final. If creditors accept this then the IVA can be closed down and you can then sell. The maximum loan to value for secured loans is around 80% I think which would leave 20% of the equity for you.
Just a thought but these offers are usually accepted.
You get a secured loan offer which is only made on the condition that it is accepted as a full and final settlement. A meeting is called and if approved the funds are paid to the IP and your IVA closed down. The loan repayments can only be a maximum of 50% of your IVA payments so the amount raised depends on age and other factors.
We have had a few clients close their IVAs down with secured loans and none have been rejected by creditors. Certainly worth considering if you cannot raise funds from family as it is clean and quite common. Once through and the file closes you can sell and move on.
Contact Shaun Vickery from Select who has access to these type of products and he can explain a lot more.
This is Shaun's profile. If you click on this it will give you the links to wherever you need to go. Best of luck with it and let us know how you get on.
