Hi There, I have an IVA which was due to finish in September 2014 I lost my income and managed to get the IVA repayments frozen for 6 months, I had fallen 8 months behind. So I have 8 months arrears to finish the original agreement. I was paying £320 per month ok before I lost my job.
I am now really struggling and have fallen behind on the mortgage and other bills. I have equity in my home and am now seriously looking at making a quick sale (for under market value) to clear all my debts and try and start again as the stress is really on top of me at the minute. When I spoke to the my IVA supervisor I was told the final fee to repay the IVA early would be just over 25k.
I have some debt with family as well as the bills I am behind and this would wipe out all the equity and just fall short on paying back all family members that have helped. I was hoping to be able to start again and would need to find somewhere to rent while getting back on my feet. I have heard of making a final offer to settle. My question is am I able to do this if I sell my house, if I do this I want to be able to clear all my debts and give me enough to find some initial rent which will mean I can then afford to have a lesser paid job. I would be able to offer around 10/11k to be able to do this. is this likely to be excepted?
I imagine it will be looked at seriously -- but make the offer to sell the house conditional upon the final settlement offer being accepted. If you sell first they will go for the lot. You are only selling to settle the IVA -- no settlement, no sale.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Good point, Michael --- another option would be to have a word with Ryan or Shaun, who post on here, about possible refinancing to clear the IVA and deal with the equity question that will arise in due course in any event.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Re borrowing just to see the IVA to the end, I like that idea, how would it work with the below Michael ?
Even if you clear the IVA with 8 x payments due aren't the IP firm going to be looking for any equity In the house anyway or is it possible there may not be an equity clause or have I read some people do an extra year instead of equity release ?
If there is no equity release to be had as prt of the IVA Could he not ask for a full and final on what has ben paid to date due to lost job or a token amount lump sum from a friend/relative due to circumstances, or are they always going to come for the house equity ?
I guess surviving is the issue at the moment and keeping mortgage company at bay !
Have you done a new I&E with IP, have they offered other solutions, ?
Last edited by longslog101 on Wed Mar 25, 2015 11:51 pm, edited 1 time in total.
My Blog details, the route I took before IVA, how I choose my firm, equity release advice (year 4-5), challenging the CRA's keeping IVA on credit file once gone from insolvency register
IVA ended August 2015. Would recommend McCambridge Duffy
Even if the poster had to borrow a bit more than the arrears to address any extension to the IVA it should still work to their benefit. Not easy to get that kind of money but certainly worth asking.
If you do decide to sell up and settle your IVA this is really the ultimate sacrifice that you could make and I am sure creditors would agree it even if your offer was short of the 25k your IP stated
Leave enough to secure rented accommodation and to clear family debts, then offer the balance as a full and final offer on the basis that you will only sell if creditors accept offer to close IVA
Also inform your IP that you have mortgage arrears, this will strengthen any offer
