IVA commenced Apr 2007

[BanPhu]

IVA commenced Apr 2007,debts ~£85,000,IVA setup paying ~£500pm + yr5 equity,return 31%.Paying the ~£500 and 1 50% bonus amount of ~£600. Totals £12,500.

Just had birthday and employer announced that our jobs are now going to an EU Eastern Block country (I'll call it EBC)! Got home to the new council tax bill! Great day!

Options are severence pay or move to the EBC under a TUPE transfer. Got ~4 months to make a decision.

I need advice on what to do, Mortgaged property may have £10,000 equity, if I relocate I need to sell or rent it. If not for the IVA I would sell it and go. The IVA has me very confused over options.

My expenses work out to ~£2500 a month, ~£700 of this is mortgage ~£800 fuel.
If I go to the EBC I would reduce travel costs petrol wise, but have school age daughters from a failed marriage that I see every other week, I would have to fly back Fri night and return Sun night to be able to see them on weekends that I have fought long and hard for, not cheap. Cost of living would be cheaper there, but what to do.

Possibilities that have been flying through my mind are:-
Try to borrow ~£20,000 off my dad and offer a full and final with this (don't want to ask him and would it even be enough). If have a full and final then the house could be sold and if there were any equity (would be minimal) I could use it to help towards paying my dad back.
Arrange with the IP to have the house sold and all equity to go as a full and final (think I'm dreaming here)
Go there and find out can't afford the £500pm and the IVA fails (Don't want this to happen, but what would be the consequences, the country is in the EU)
Go there, find out I'm better off than I thought, keep paying the mortgage on the UK house and paying the £500pm and seek a variation if I am better/worse off) (what would happen if it was worse off, would IVA Fail).

Stressed over this and wonder what to do and what I need to do?
Appreciate any help/advice or requests for more info.

[David Mond]

Phew! Welcome to the Forum.

A lot of options here.

I don't think giving up the house and letting the IP sell this to achieve circa £10,000 as a F&F is a goer.

I believe however that £20,000 would be an acceptable sum. That way you could be clear of your IVA and you could sell the UK home in your own time and pay back your Dad part of what you are suggesting you borrow from him and thereafter you'll know what spare funds you'll have after commuting and living in Europe.

You need to discuss matters with your IP in any event. Good luck.

[MelanieGiles]

I agree with David. If you decided to give the job in EBC a go, and can work around the regular visits to see your daughter which is fairly high up the life priority list, then an offer to settle the IVA once and for all seems to be a better way forward.

Having just come back from a trip to Bulgaria, I can honestly say that the ex-EBC countries have much to offer - low crime, clean streets and fresh air, and very cheap cost of living. Give it a go, as you seem to have little to lose.

[BanPhu]

Thanks, my dad mentioned when he retired last year about lending me money for F & F payment out of a pension lump sum he received and then I could pay him back, but when I enquired of IP at last review I received very little help over a firm figure and a letter saying a variation meeting would need to be called (28 days notice) and as dividend of 31p in £ for £83,563 it would have to be provided by contributions of £29,820 and a lump sum payment from equity of £5,517.

Over £35,000 would have not of been a possibility and so head in hands I have carried on with the IVA and even though times have been harsh it has felt good it whittling away until now with the Company decision.

How would I best progress over getting a F & F figure or offering the £20,000 as a F & F figure if it sounds fair and if it is agreeable still with my dad (I will need to speak with him if this is viable from the IP and creditors, but sure he would be agreeable to it still).

My review is due late April and apart from this situation and a few bill increases I have received no pay rise this year and will still be paying ~£500pm.

Nice to hear about Bulgaria, the EBC is very near there, main thing I am concerned about though is if I go and can't sell the house here then I will have to continue the mortgage which could break the bank (shame its still 4.x% not 0.5%) and cause me and the IVA to fail! If I can sell the house and I am still in IVA, anyone know what would happen with 4 year IVA and equity release to finish early, would the equity go into the IVA (windfall) and I have to continue monthly payments through a 5th year to complete it?

Thanks for all your help and advice

[MelanieGiles]

If you do not sell your property, but rent it out instead to cover the ongoing mortgage payments, you will need to comply with the final year revaluation and equity release provision - assuming your IVA continues with you making ongoing payments.

If you offer a full and final settlement, the house will not be affected, and if it is sold after the IVA has been concluded, you can use any equity to pay your Dad back.

[BanPhu]

Thought I'd give an update and hope for others. I now have a completion certificate and I have checked the IVA register and I am no longer listed. In the end I managed to borrow £12,000 and it was accepted with 100% vote, the sense of relief was immense!

I am still having employer problems though, but the relief in knowing I have more freedom to make a move without additional burden, I can't explain. Just got to pay my dad back now and keep to a controlled budget! My wife is even more relieved that she can see her family abroad for the 1st time in over 3 years as we can afford a flight for her!

The IVA has been a godsend in a lot of ways, but because I did not have a comprehensive Income and Expenditure sheet at the beginning, belts were tightened to bursting point. If there are two bits of advice I can pass on from my experience, they would be to do a comprehensive Income and Expenditure which does not leave you struggling to the extreme each month and if you are lucky enough to be able to offer a full and final payment then don't panic about it being too little.

Good luck to us all.

[kallis3]

Congratulations BanPhu. Glad it's all been finalised now, and wonderful that your wife can see her family again.

Great post as well - brilliant for those just about to start out.

[Adam Davies]

Hi
That is a good result
We seldom, if ever, see full and final offers rejected on this forum.
Hope for many
Regards

[molly16]

thats brill. good for you /.

[Skippy]

Congratulations from me as well x

[BanPhu]

Thanks, one other bit of advice that was so obvious that I overlooked it, join this magnificent forum! Unfortunately people won't see this advice before they join though Thanks everybody!

[flumpy dog]

WELL DONE banphu good luck for the future

[MRBLUESKY]

hi banphu according to my calculations a £20000 offer would only be a few pence in the pound short of your original dividend concluding 2.5 years early i think its a very good offer best of luck.a variation date can take aprox 2 months to set so watever decision you make try to act promptly.

[kallis3]

Banphu has had his full and final accepted Ronald.

[MRBLUESKY]

oops, cheers jan thought it was a recent post, siily me i was right though about the offer been good.did he offer the 20000 out of curiosity.?