Hi, I am currently 2 months into the 6th year of what was originally a 5 year IVA with DFD.
DFD extended my IVA after the 5th year and increased my payments from £330 to £508 following the review of equity of my property.
I have never missed a payment on my IVA, however am worried that this may change very soon as my finances become stretched due to my Wife expecting our first baby at the end of May.
My Step Dad is willing to help by giving me the monies up to what is outstanding on my IVA for the sole purpose of clearing it.
I would be grateful for further advice on the process of clearing my IVA and how I should go about doing this with DFD.
Firstly congratulations on the what will be a very special time of your life when you become a family of three.
Is this sixth year in lieu of the equity?
I would write to your IP offering the payments up front for the closure of the IVA, remember to say where the money is coming from and that is only available for the sole purpose of finalising the IVA.
So 10 payments of x = £ and this reduces for every payment that is paid until acceptance.
That is assuming the equity is dealt with of course.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
You will need to be quick as it might take up to 6/7 weeks for your IP to call and hold the meeting by which time you are getting closer to the end in any event. Make sure that any ump sum offer is reduced by any payments made in the meantime whilst a decision is reached. Best of luck.
Thanks for your responses.
I have contacted DFD and they are forwarding my case to the review team. In the meantime they have asked for a letter and also to stipulate that the offer will reduce as payments are made. I have drafted up a letter by cobbling together other F&F offer letters I've found online. I'd be grateful if anyone on here could have a look at the letter (see below) and give any advice before I send.
Letter is as follows:
Dear Sir/Madam
My Individual Voluntary Arrangement
I am writing to advise you that my Step-Father is prepared to provide me the outstanding balance of my IVA, for the sole purpose to offer to my creditors in full and final settlement of my obligations under the IVA. The outstanding balance of my IVA is currently £££ and this offer from my Step Father will reduce as payments are made until acceptance.
I believe that this will provide a return to creditors, as that which was originally anticipated, and has the benefit of repatriating monies at a much earlier juncture than the original proposal.
I would be grateful if you would arrange for a meeting of my creditors to be called to consider the offer. I would be grateful if you would acknowledge receipt of this letter and advise me of the timescale in which the offer can be submitted.
My Step Father has made it clear that the funds are only to be utilised in full and final settlement of the voluntary arrangement, and in the event that you insist that you be in funds prior to the meeting that the monies will be held in trust to his order, to be promptly returned without deduction, in the event that the offer is rejected.
I shall look forward to hearing from you as soon as possible, and please do not hesitate to contact me if you have any queries with regard to my request.
The letter sounds good to me, I'm sure Foggy will take a look and offer his feedback as he's fairly articulate in writing. All the best with your offer.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
The only change I would suggest would be to remove " The outstanding balance of my IVA is currently £££" from the second paragraph and replace it with, "The total of agreed remaining monthly payments is currently £££"
Best of luck.
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 all your responses, so much appreciated.
I have adjusted my letter and will be sending it off asap. Before I do, please can someone let me know what they think. (See below)
Dear Sir/Madam,
I am writing to advise you that my Step-Father is prepared to provide me monies, for the sole purpose to offer to my creditors in full and final settlement of my obligations under the IVA. The total agreed remaining monthly payments are currently 10 x £££ . Any payments made in the meantime will be deducted from the lump sum settlement figure.
I believe that this will provide a return to creditors, as that which was originally anticipated, and has the benefit of repatriating monies at a much earlier juncture than the original proposal.
I would be grateful if you would arrange for a meeting of my creditors to be called to consider the offer. I would be grateful if you would acknowledge receipt of this letter and advise me of the timescale in which the offer can be submitted.
My Step Father has made it clear that the funds are only to be utilised in full and final settlement of the voluntary arrangement and in the event that you insist you be in funds prior to the meeting, the monies will be held in trust to his order, to be promptly returned without deduction, in the event that the offer is rejected.
I look forward to hearing from you as soon as possible, and please do not hesitate to contact me if you have any queries with regard to my request.
I would only add (if not sent yet) that the line 'Any Payments made in the meantime' perhaps would read better if after the sentance 'I would be gratefulif you could arrange a meeting...'
I would also state that if they do not require funds up front that your Step dad is prepared to provide funds within xx days of confirmation that the f&f offer has been accepted by creditors.
