hi could anybody please clarify how a offer to settle iva works,on my proposal debt stood at 19000,i have been in iva now for two years exactly and pay 242 a month i thought the plan would be to repay back 14,520 throughout the term, 242pound x60months,i am now in a position to offer a settlement,i do have the amount of the full debt,would this be the amount i would need to pay or would it be minis the amount already paid into iva,i have rang iva company but they wont tell me how much i owe im worried that i will offer more than i need to and the creditors will just snap it up and iva company are very vague
As a guide, remaining payments i.e. 36 months x 242 plus any equity (if any) would be a start. Would depend on what creditors perceive as a good return.
would i have to pay any more than original debt ie i owed 19k if i offered that would i still have to pay interest and charges after two years or would that be exceptionable and thank you for reply
Kaza ..... you always owe the full amount of the original debt, plus fees and possible statutory interest at 8% per annum simple. Anything unpaid from this amount at the end of the IVA is written off.
A F&F is normally to repay what the creditors signed up for under the terms of the arrangement, so to settle with a F&F you need to offer the amount you pay monthly multiplied by the remaining payments ( plus 12 if there is equity to be considered).
To "settle" the IVA from, say, an inheritance or windfall you will need to pay the full debt, fees and possible interest, less what you have paid in so far. This money is already "pledged" to the creditors under the terms of the arrangement and they will want it, if it is available.
It is s simple operation for your company to calculate this figure and I would suggest that they are either being awkward for the sake of it ( a futile action) or the person you have been talking to is a (badly) trained monkey !
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
thank you so much im much clearer now,i have never had any problems with them until now,it worried me because the money is not a windfall it is compo however it is more than the total of original debt,it made scene to me to pay off the iva,even though it is in my proposal to keep it, as what ever account i put it in it wouldnt make the amount of interest i would pay each month to the iva company,id also have a clean sheet,but speaking to iva they wouldnt give me a figure of what i now owed,im sure it just a breakdown in communication,thank you for taking the time to reply,hopefully i be able to post some good news soon
Bear in mind, Kaza, if (IF) your IP agrees that the compensation is yours to keep (some will, some won't)then you only need offer the sum to make up the amount repaid to what the creditors would have got anyway. So the number of payments left.
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 that if this money is yours to keep then you should only offer what remains to be paid possibly even with a little discount for early settlement. If creditors turn it down just keep paying them as normal for the next 3 years.
thank you,they requested a letter off the solicitor to give a breakdown of what money was for,solicitor advised me to seek legal advise and has put me in touch with a lawyer who deals with ivas he is going to look through the proposal and see if i can keep it and if not will be getting in touch with iva company to sort out the settlement amount,think it will be money well spent,at least i know it is being done properly and what ever i end up paying to finish the iva will be the correct amount,feel like its took the world off y shoulders having some one go through it all,thanks everyone,will keep u posted x
I would put money ( not a lot!) on there being nothing of any use in the wording of the arrangement, or even the relevant conditions.
IP's generally fall back on the way compensation is treated in Bankruptcy and follow this through to the IVA. In bankruptcy compensation for pain and suffering is allowed to be retained by the debtor.
However, a few IP's ignore this and, in the absence of instructions to the contrary, insist that the compensation be paid into the IVA estate.
Hopefully your IP if of the former group and the question will not even arise.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
