My original payments were set at £317, then they quickly did a modification to suspend my company pension payments, so it went to £402 from my first payment. Mid 2007 they went up to £430.
Within this, as part of my 50% I have totalled £15.5K extra into the arrangement.
FYI: My creditors are as follows:
HBOS - HBOS Recovery
Barclays - Barclays recovery
3 x Lloyds TSB - All now with Max Recovery and were the major creditor
1 x Egg - Egg Recovery
Last edited by Notsowiseone on Fri May 08, 2009 2:31 pm, edited 1 time in total.
Given that the original dividend on offer has been exceeded I would certainly try and have the IVA completed after the sixty months. Max in particular are very commercial and if your IP puts up a good enough case you might not receive an extension. There is no guarantee but as Melanie says a few months extra would be worth it rather than failing the IVA after all your hard work.
So I should go back and ask them to propose the reduced payments of the £210, but with the request of possibly no extension to term based on payments to date and increased dividend?
Exactly. When creditors see the comparison from the dividend on offer at the time of the original IVA and what the final figure will be they may not request an extension. Your IP can recommend the variation for reduced payments and a 60 month closure. Nothing to lose by trying it.
I rang back again, got through to a differnt person. Explained what I wanted to propose only to be told that was pretty much not possible either.
I explained that I had had some advice from serveral different IP's today and that all of the different things I have offered are all viable, I then asked to speak to my IP, got told he wasn't in, but will be back on Monday.
The girl said she would "present" my case to him on Monday and someone would ring me back. So fingers crossed for that.
So far so good. Finally got an answer. They are going to go for a paid to date meeting for me!
One thing that puzzles me is that she said for me to stop paying them any more money with imediate effect. (Is this normal?) I did get her to put that in writing to me to confirm it too. She said it will take a few weeks to get the paper work out to me and then go from there.
Thanks all for the advice, now I just play a bit more of the waiting game.
Yes, I had planned to do that anyway. But then wouldn't I then be covered from having it in writing from her? If it all goes well and they accept, I guess it would only be one or two months anyway.
I can't afford my original payments, but I will put aside the money I can as per their budget that they have advised me would have been the alternative. I said I was okay to do the reduced payments with an extension if necessary, but asked about the option of asking for paid to date completeion, and they said yes they would put it forward (this was after speaking to my IP). If they come back and say to carry on at the reduced rate then I will still have that money (£210) aside until they tell me otherwise.
As they will need to show your current income and expenditure position, if creditors can see that you could afford to offer some form of repayment on an ongoing basis, they may not be so happy to accept a full and final on the basis of what you have already paid in.
Hi Melanie, thank you for answering. I accept that this may be the case, hence my intention to still be putting the reduced amount until they tell me something different.
My biggest query is why they would tell me stop paying completlely with imediate effect while they sort this out (which is why I asked for it in writing). I will be setting aside the reduced amount until I hear either way from my IP.
When you say
"they may not be so happy to accept a full and final on the basis of what you have already paid in."
Is that because you think it is not enough dividend already paid or just that there is still scope for further payments and you think they will want those?
If you have a DI then a variation downwards plus an extension will be what would be the norm.
A F&F is only on exceptional facts - you need to discuss fully with your IP everything Notsowiseone.
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.
Hi David, I have done. I chatted with them several times regarding this. I made them aware that I can afford the reduced payments as pointed out previously. The girl I spoke to said she would speak to the IP and come back with what they thought would be the way forward. So I am just going with what they have now told me. They are fully aware that I can afford a lower amount. I told them that when I spoke to them. They have ammended my figures on their system to the lower amount showing that I have some DI. I am not claiming otherwise.
I did point out in one of my previous posts that I still had DI, I am not hiding this fact from anyone here or my IP/Caseworkers.
Last edited by Notsowiseone on Wed May 13, 2009 10:13 am, edited 1 time in total.
