I have done my utmost to pay as much as possible but now hours are being cut

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Debbie.mc

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Post by Debbie.mc » Sat Apr 25, 2015 10:10 pm
Hi, I have been in my IVA for 27 months my payments are £100 but I have been lucky enough in the past to be able to pay in extra total paid in so far is £4658, I own a property so I have to do 72 months (£7200). I have just been advised at work that from 1 July our hours will all be cut to 35 this means my IVA will become impossible to carry on, having spoken to one of my Advisors they say a F&F figure should make sure creditors get what they were going to get if I just went along as normal, does that mean that my F&F figure can be in the region of £2500, my daughter says she could give me this but not much more. Any advice appreciated as this is now playing havoc with my health as I am in a blind panic, as you can see I have done my utmost to pay as much as possible, working 50 hrs + but now this is out of my control.
 
 

Foggy

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Post by Foggy » Sat Apr 25, 2015 10:19 pm
Full and finals use the number of months remaining x monthly amount as the base amount. Often a little less can be entertained as they are saving on costs over the period.

You say you are on 72 months -- was this extension because you are with NRAM, or because the dividend was low ? If you have equity there might still be a further 12 month extension, or has the property been excluded ?
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
 
 

Debbie.mc

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Post by Debbie.mc » Sun Apr 26, 2015 6:30 pm
The 72 months is including the equity year, so I have 44 months left at the moment. Any advice is appreciated.
 
 

Foggy

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Post by Foggy » Sun Apr 26, 2015 6:51 pm
OK -- there are a couple of ways your IP and creditors can look at this:

Over the term they were looking at £7200 and you have paid £4658, leaving an expected £2542. OR:

You have paid £4658 and they are now looking at getting a further £4,400 if the IVA goes to term, totalling just over £9,000 -- so they will be even happier.

Much will depend upon your situation and the attitude of your IP. I hit my dividend half way through and could no longer make any payments and my creditors were content to "call it quits" as they had got what they signed up for, althought they could have got more by forcing me to continue ( which wouldn't have been a possibility). The success of my offer, I believe, was due to the help of my IP.

In your case there is a possibility of the IVA failing if they force it to continue by refusing an offer. You have demonstrated your good intentions by over paying, so they should look kindly on an offer.

You would be looking at a figure between £2500 and £4400. If I were in your position I would try the £2500 - they get what they signed up for (though less than you would be paying over the whole term)but save a chunk in not having to deal with nearly 4 years of small payments, which will be relatively high on payments of £100 monthly.

Who are you with ?
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
 
 

Debbie.mc

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Post by Debbie.mc » Sun Apr 26, 2015 6:56 pm
Thank you for your guidance, I will sit down with my daughter and discuss everything with her (she is a legal exec) though does not have an understanding of debt protocol. I will get all my figures and offer in writing and try £2500. After all they can only say no.
 
 

Lisa Thomas

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Post by Lisa Thomas » Mon Apr 27, 2015 11:43 am
Good luck Debbie.
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk
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