Hi,
I have an IVA and originally owed £34k. I have been making my regular payments for 2 years and I have made overtime payments too. I calculate my contributions so far to be £8270 approx. I have made the IVA company Stepchange a full and final settlement offer of £20K to finish the IVA early. Se the IVA will take a total of 28270. This offer is coming from the sale of my house and me and my partner have agreed to pay this. my usual monthly payment is £398 and I have about 4 years left to run. Will this offer be likely to be accepted? I am really worried it will be rejected. I just want the whole thing ended, so we can move on with our lifes.
If you are able to pay back 100p in the pound plus fees and statutory interest then anything else is yours.
I take it Stepchange have removed the restriction on the sale from the Land Registry?
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 don't know how much Pence in the pound my offer is?
At this stage, the variation report for the offer is being completed and I should be getting a meeting of the Creditors in September.
I just wanted to know what the likely hood of my £20K offer would be accepted ?
£34k was the total of your original debt or just what you owed to the IVA.
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
The offer is a little over what they would be getting across the next 4 years ( I am assuming you have figured in the equity year), so should be very attractive as it will also save them a chunk in admin costs.
I am also assuming this offer was made on the basis that you are volunteering to sell the house for this purpose only and that if the offer is rejected the house will not, then, be sold.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I made sure the offer looked attractive as I really want them to accept it.
I did tell Stepchange that if we cannot sell the property to cover the offer amount we will just stay in it and continue as normal for the remainder of the IVA.
We actually have a cash buyer wanting to put an offer in on the house (that will cover the offer). But I keep putting them off until we know if the creditors will accept the £20K offer as a full and final settlement.
All to the good. Obviously you can never second guess creditors, but it strikes me as a good offer all round.
The downside, of course, is that your credit record will still be marred until the 6th anniversary of the start date, making buying anew ( if that is the plan) or renting a little more difficult.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
For the short term we are moving in with relatives. We have already looked and my partner can get a smaller mortgage in their name so we should be ok and when the 6th anniversary has passed we will look at a joint mortgage then.
When would the IVA (if the offer s accepted) remove the restriction on the land registry?
They should remove it when they issue the completion certificate, but I see no reason why they would not do so as soon as the offer is paid in --- you can but ask.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
They should remove the restriction now as it could cause problems with the buyer.
Good luck!
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
By my calculations you have actually offered more than you would have, if the IVA continues in the normal way (£19,104) unless the 4 years you have quoted does not include the 12 month extension for the equity?
Personally if the 4 years includes the extension I would have therefore offered less.
Hopefully as the offer is so attractive I would think creditors would be stupid to reject it.
Hi, The remaining 4 years does not include the extension for equity release.
After my first year of payments I had underpaid my overtime so they extended my Iva by 10 months to compensate this. so I have approx. 4 years of payments remaining.
I have worked out that I have actually contributed about 12000 to the IVA so far with all of my overpayments and regular payments over the 2 years that I have completed. So with the £20K full and final offer the IVA would have received £32000 back from and original debt of 34000.
I am worried that the creditors wont accept my offer, but it must be a good offer even without the equity extension?
They will save a huge amount of administration costs from the 4 years remaining and they can have the money pretty quick.
I have my fingers and toes crossed that it gets accepted.
Stepchange have said that the Variation report will be finished shortly and I will have a date for the meeting soon.
This sounds very straightforward and the variation should be drafted easily. I see no reason why it would be rejected as creditors will only then get roughly the same money over a much longer period of time. Hopefully the variation is drafted explaining that it is a full and final offer as otherwise creditors may ask for the equity plus ongoing payments. If this happens just withdraw the offer and continue on.
