Hi I am 17 months into an IVA with Payplan, i pay £167.07 per month, I am selling my property to clear my debts and have a fresh start, (I should have about £8k in equity) how much do you think I will need to pay to settle the IVA? Once it is settled is that it am I free to carry on living and earning without having to pay monies to anyone?
Hi and welcome to the forum. I think you will first need to check your IVA proposal and have a chat with your IP as maybe the property is included as part of the IVA and any equity may need paying or a part of into the IVA.
To clear your IVA fully you will need to pay 100% of what was owing plus IP fees and in some cases statutory interest.
Have you informed your IP you are selling your property? Did you sign a form in respect of property RX1 I believe, assuming you did, your IP will be informed if you try to sell property.
Sorry for so many questions and not many answers.
Welcome to the forum by the way.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
Hi thanks for replying!
Payplan know that I am selling my house and have stated that I will owe them 85% of the sale price minus paying off my mortgage, if that figure is less than 5k then I don't need to pay them anything.
When you say pay 100% to clear my IVA do you mean the full debt £17k or the amount outstanding £167.07x60 months?
Thanks in advance, I know I'm a newbie but what dies IP mean?
Hi Debbie. During an IVA you always owe all of the original debt plus fees and possible statutory interest (as outlined in the proposal ... many newer ones exclude this). So, any things like windfalls, inheritances, overtime payments are due in, on top of usual payments, until this amount is reached.
If you wish to make an offer to pay off early ( a Full and Final settlement ) this is based upon the number of payments left times the monthly amount (plus any allowance for equity if applicable).
An IP is an Insolvency Practitioner -- the person responsible for the supervision of your IVA (also called the Supervisor).
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
So if after the sale of my house I only have enough equity to pay the outstanding payments( I think about £7k) will that do or will I still be in the IVA? Paying each month? The whole purpose to sell my house is to clear my debts and start a fresh if this isn't going to happen I may as well just go bankrupt
Thanks in advance
Hi -- the equity will be payable into the IVA and the IVA will continue as normal.
If you go bankrupt the Official Receiver will sell the house and take the equity. You will also, most likely, have to make payments, of a similar amount as you do with the IVA, for three years ---- so, considering that you have been in an IVA for 17 months, you might not be a lot better off.
I think selling the property is a no go, as it will not clear your debt and you will then have to find somewhere to live --- rents are often higher than mortgage payments these days.
At this stage BR has no real advantage over the IVA.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
To anyone thinking of making a full and final offer, offer less!! We owed £15000 in payments if we had continued till the end of the IVA and the creditors accepted 10,000 which was very kindly given to us by a family member. We are now debt free and rebuilding our lives after several years of hell, we think taking out the IVA was well worth it, we owed over 90,000 and paid back including the final offer payment £32,000 in total. It was a struggle, but to anyone doubting taking out an iva dont - it will help to get your life on track believe me it will!
Hi sadone, offering less worked for you, but is a gamble and will depend upon the circumstances. The basis of a full and final offer is to make the best offer you can. If the creditors refuse you will not get many more bites at the cherry and might find yourself stuck in the arrangement.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
