Hi. Just looking for some advice.Since I took out my IVA in 2010 my property has jncreased in value enough to complete my IVA in full.I am happy to sell and go into rented accommodation as I am in danger of being made redundant this year. There should be enough money to pay back 100% in the £. Is it likely the creditors will take this much or take what I would have paid without a full & final. I have no qualms about paying in full, but trying to work out what I will have left for rent etc. My total debt was £34,000 with an agreement to pay back £22,500. I think I have paid approx £15,000 to date. My iva company are happy for me to sell given my change of circumstances, but can't yet tell me what they think the creditors will want. Has anyone else been in this situation. Thanks for any info
I would imagine they will want the amount to cover the full original debt, plus fees and possible statutory interest, less, that you have already paid, though some have managed to get the liability to interest removed.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thanks for your input. Yes I think they will want the full amount too plus fees. I wasn't aware about liability interest, but now I know, it's something I can factor in. I'm just trying to get an idea, as if I lose my job I will need to have money to rent. But at least the IVA will be paid off . Thanks again for the advice.
Currently the interest element is 8% simple p.a on the reducing balance.
In my IVA ( though it never came into play) the liability to interest was excluded from the start and, some IP's have submitted variations to get this removed, with some degree of success.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
If you are voluntarily selling the property creditors should exclude statutory interest but make sure you get agreement in a variation first. Otherwise consider renting out the property to cover the costs and sell it then when the IVA is completed.
Given that you are near the end you could also consider borrowing funds from a third party to offer as a full and final settlement. You could then sell afterwards. If you cannot borrow the funds from friends or family a secured loan may be an option. Creditors accept the full and final and you sell later.
