Hi I am 20 months into my iva I pay £140 a month although I have been maintaining the payments I am finding it VERY hard with four children to live within the restrictions of an iva. I contacted my ip a couple of days ago to find out how much I have left to pay as my parents have offered to clear it for me, mainly due to not being able to stand seeing the distress and worry it causes me. I have been told my total to repay is just under £12,000 although my ip did suggest offering a lower amount but not to expect my creditors to go for it. My ip are also stalling in sending me out paper work to get the ball rolling and are trying to convince me I am better off staying in the iva?????
Can you shed any light as to why this is? Also what would be a fair amount to offer and what do you think my chances of having it accepted are? Many thanks in advance
A f&f offer should be based on monthly payment x months left. Presuming you are in a 5 year IVA with no equity that would be £140 x 40 = £5600 .... Not sure where they got £12k from unless you have an equity release clause and are due to release equity in the last year of your iva ?
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
No no equity I've been told that's what it will be to clear it "no questions asked" should I not be expected to repay the full amount? They said that my offer of £5600 would more than likely be refused
Not too sure what paperwork they need to send out to you, as all they really need is ano offer of funding and an updated income and expenditure account.
There should be no reason for them deliberately stalling, as they will also get paid more quickly if the offer is accepted by your creditors.
It's taken 3 phone calls to get an expenditure form sent out and I was today actually told what I need to do with regard to letters offering a f&f the past two phone calls the advisors have not mentioned them. I was very confused until today and don't understand why all advisors do not give out the same advice hopefully I am at least a step nearer to being clear of my iva, it has caused me nothing but stress and worry since I entered into it.
I think if you are in a 5 year IVA, your creditors may be thinking of the return value of the debt.
To keep you in an IVA for 3 years may yield more dividend.
I am not an expert and really respect Melanie's advice.
How ever I have been in an IVA for just under 5 years, and if I have learned 1 thing, is to think out side the box, and look from their point of view.
Over the next 3 years, that you have signed up for, how much can they get?. with the base rate at only .5%, how much can they get in your wage rises, bonus, change in circumstances changing ,equity etc. 3 years is a long time, and to settle now may not be in there best interest!!!!!
can you ask your parents to help out on a monthly basis in the mean time.
Hope it all goes well for you, I really do!
I will be watching your reply's, and if I can help I will.
On the other side of the coin, Kev, a bird in the hand is worth two in the bush
It suits the IP as they get paid the same in many cases, usually being paid a percentage, rather than time spent, and get it earlier.
The creditors get what they signed up for, early, get to write off the toxic debt (which is important for a lender), and override any possibility of the IVA failing.
Swings and roundabouts really.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Most creditors will accept a full and final settlement which is based on the level of outstanding payments - and disregard the potential for additional funds from uplifted salaries they may be foregoing.
At the end of the day it all boils down to case specifics, and if it is sensible to settle early I generally find that creditors are happy to have their money early.
Thanks everyone for your replies I am going to struggle to make repayments in the future as my husbands income was taken into account at the time although now he feels and quite rightly so that his "extra" money should not have to pay of debts that I ran up before we met so is only going to pay a contribution each month to the household. I'm hoping that the chance of a f&f settlement might be more appealing then me not being able to pay!!
Your husband's surplus income is his and should not have been taken from him unless he offered it. Your full and final settlement should be accepted as without his help and given the fact you are struggling anyway, this IVA looks certain to fail.
hopefully I am at least a step nearer to being clear of my iva, it has caused me nothing but stress and worry since I entered into it.
