Wondering if you can advise me as to whether or not you think a full and final settlement would be accepted!
Myself and my husband started an iva in May 2006 with Baker Tilley/now Debt Lifeboat. We have paid each payment until September last year when a 6 month payment break was accepted due to me having our third child! Due to illness I couldn't start back work in March as planned so the iva break was extended to 7 months. We started paying again this month, but are now faced with a problem. I am currently signed off work sick and my doctor feels that when I am ready to go back to work (probably September) I really need to consider part time as he dooes not think I will be fit to work full. He is willing to provide a letter stating this! If I work part time there is no way we can afford to pay the iva payments! My parents are due some money around October time and say they are willing to give us some money to try to pay off the iva so that i can work part time! I earn far more than my husband so a pay cut from my wage would hit us hard! I don't know whether the iva would allow us to do this as we are only paid just over 2 years of payments, and if they did, how much we would have to offer in a FFS!
Our iva was to pay back 60 monthly payments of £730.00 totalling £43,800. We originally owed over £80,000. I believe we have paid to date £16,790.00. I don't know what a reasonable settlement figure would be! Sorry to go on and on, but I would really appreciate any help!
Hi, sorry to hear that you are not well, I hope your health improves soon.
Usually, if you are to offer a full and final, it should be as near to the dividend originally offered as possible. You also need to emphasise that the money is only available for the full and final.
I would speak to your IP and advise them of the position and see what they advise about your offer.
Good luck and let us know how you get on.
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Ball park figure o around £25k to settle would be mysuggestion - what you have paid less the original set dividend, minus some IP fees for early completion
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Hi
A good figure suggested by Luluj.
I would say that under the circumstances anything between 15-25k will be given serious consideration by your creditors. I presume that there is no equity clause involved ?
Regards
Get your IP to work out a settlement figure for you based upon you returning the original dividend pledged. At least that will give you a figure to work with which is likely to be acceptable to creditors.
You stand a very good chance of a full and final settlement.
I will give my case as an example to think about.
I started IVA in july 2007,my debts were far higher and had a 4th year equity release.
As I considered the future,it became evident that letting the IVA for the full term would have severe implications on my finances even after IVA concluded.I was finding the payments difficult as well.
I started thinking about Full and Final in Jan 2008.I asked my two sons to help me for a full and final settlement.
Then I asked my IP for a variation meeting.
The proposal was made by me as follows.
1) A reduced payment of 500 pounds for 11 months.
2) To be released from 4th year equity release.
3) To pay a lump sum at the end 11 months.
4) To have a clause introduced stating that I am permitted to concluded IVA with full and final amount agreed and amount equivalent 11 months minus the amount paid so far towards 11 monthly payment.
I wanted to complete my iva at the earliest because of my age and I am the only earning member,I wanted it to end in case some thing happened to me.
Can you tell me if IVA is in joint names?
My IP Grant Thornton have been extreemly helpful to me.
You may be able to have something along the lines that I had.
Just to let you know I have made my payment of full and final amount and the amount left over to make up for 11 monthly payments.
I hope the above account would give some thing to think about and a proposal along similar lines would be I think is ideal for you.
Hi everyone! Thank you so much for all your help and advice! The iva is joint with my husband. I don't know about the mortgage clause! I am sure that our house can be remortgaged at the end of the agreement so I don't know if that makes a difference! I will contact my IP provider in due course and let you know the outcome!
I believe around £20k would be acceptable. Have a chat with your IP and let us know. Good post Hara.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
