do you have to pay back the full amount

[zonta1]

I have 22 months to pay on my IVA and have finally told my parents what has been going on. They have mentioned the possibility of paying the IVA off in one go. My dad is under the impression that you can make an offer to end agreements. I currently pay £320 which is based on my wage and will in 22 months time clear the agreement.

Obviously I have no spare money with which to make an offer but I think my dad may be considering helping with this. To end the IVA do you have to pay back the full amount you borrowed in the 1st place??

thanks and hope all that made sense?

[Adam Davies]

Hi
No,you could offer to pay back enough to deliver the proposed dividend.As you have less than two years left you will probably need to offer a lump sum equal to the remaining payments that you have left.
I presume that you are not a homeowner with a fourth year equity clause.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[zonta1]

Thanks for your reply. I have a few more questions. if you could spare the time I would be very grateful.

I am not a homeowner. I have a clause which states the minimum amount of money which must be paid back over the whole term.

If I continue to pay back £320 per month this amount will be exceeded.

If i was to make an offer would it need to be in the region of 22 months * £320 = £7040

This offer would essentially be a gift from my parents (if it happens). Is this acceptable?

I do have clauses in my contract which state that 50% of any overtime (which I don't get anyway) must be paid towards the IVA.

I also have a clause which states that any inheritence or financial gifts I receive must be paid towards the IVA.

Do these clauses complicate matters at all? What would you advise my next step to be?

Many thanks

[Adam Davies]

Hi
all those clauses are standard and will not affect your ability to offer.
I suggest that you contact your IP and say that your parents have offered to make a loan equal to the remaining payments[7k] on the understanding that it is only made if it is used to conclude your IVA.You will then repay your parents with your disposible income[that,s upto you]
They should snap your hand off.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[zonta1]

Thanks again Andy for such a prompt reply.

It's a relief to hear that there is a possibiity I may be able to end everything early.

I am sorry but I have a few more questions for you.

1) you said they should snap my hand off at £7,000. Is this something I should be negotiating and initially making a lower offer or should I just email with the £7,000 figure.


2) what are the timescales with this sort of thing? If I was to email my supervisor tomorrow with an offer. At what stage would my parents be asked for the money?

3) My parents are very private about their money and they would be very reluctant to hand over private information such as bank statements etc. Is it just a case of my dad paying the money into my account and me paying my supevisor? or even my dad paying a cheque to the supervisor?

I need to fully understand what I am asking him to do because I can think of nothing worse than him agreeing and then pulling out at a later stage.

Many thanks for your time

[Adam Davies]

Hi
You would be best to offer the remaining payments to save any chance of rejection.
Your parents could deposit the money with the IP prior to the variation meeting but a letter from them will probably be enough.
If you speak with your IP tomorrow I would expect them to propose a meeting to be held within 28 days.
I can,t see any reason for this not being accepted.
For info I have proposed and had a F+F settlement agreed for my own IVA earlier this year.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[zonta1]

Thanks Andy

I will contact my supervisor in the morning to discuss this further.


You mentioned that within 28 days the supervisor will call a meeting. What and whom does this involve? Do I need to be in attendance? Will my parents need to attend? What would be the next stage after the meeting?

Sorry for all the questions but feeling very anxious at the moment

[MelanieGiles]

Hi Zonta

Just to add a few comments to the very able advice already provided by Andy, your IP will draft a revised proposals and issue this document to your creditors at the same time calling a meeting, which you will not need to attend. Your creditors will be given the opportunity to study your revised offer and vote either in favour or against. These votes are usually submitted by either post or fax to the IP directly.

Your parents will certainly not be required to attend the meeting, but should be in a position to hand over the money to your Supervisor either before or on the day of the meeting. If this is done, the your Supervisor ought to be able to file a combined Chairman's and final report, thus concluding your IVA within 4 days of the creditors meeting.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk