Hi all happy new year! Big year for me I am coming to the end of my engagement in the Forces and as such I will get approx £10k payout in April, I have been in an IVA since nov 06 paying £370 a month I estimate I will owe 8K.
I need all the money I can get so what do you think my lowest offer could be to be accepted? I have no mortgage etc just a straight forward IVA.
I was going to justify my offer with the following reasons, need cash for: Increased cost of living
Increased rent
Relocation expenses - removals, job hunting etc
expected drop in salary, potentially unemployed.
then make an offer of 6K with a cofirmation of termination of employment and proof of payout.
Any help would be appreciated particularly on amount to offer, justifying my offer and an 'offer of settlement' letter perhaps someone has had previously written by a IFA
You may find that the money you are due to receive will be treated as a windfall in the arrangement and therefore money which creditors would be entitled to in any case, and are therefore not available for you to offer an early settlement. I would check the terms of your IVA proposal and have a chat with your IP early next week.
Did you know that you would be entitled to this money when your IVA was taken out?
No I wasn't expecting this money as I was expecting a longer career in the forces but my personal circumstances changed (baby) so decided not to extend. It seems harsh to treat it as a 'windfall' as its meant to be used for settling into civilian life. I guess I can only try a settlement offer and hope for the best, if rejected I will just make the full payment. However I did originally speak to my iva co explaining I can get this money 'if' I leave and they recommended I make a 'fair' offer (whatever that is?) they never mentioned the windfall clause at that time.
Melanie have you got a decent draft letter I could plagiarise for my circumstance? Thanks for your advice.
If your IP is happy to ignore the windfall issue and put forward an offer of settlement for you then I would let them get on with it. If you need to write to them to confirm your intent, just put down in your own words what you want to say - clearly explaining what you will need to use the resettlement monies for, and that should be fine.
Although your IP may ignore the windfall provisions, creditors may not, so do make sure your IP highlights all of the issues - including the fact that you may not get a civilian job for some time.
Right my letter has been sent specifying the reasons above and asking that all my issues be raised at the variation meeting particularly my potential unemployment. I will owe £7700 and I have Offered £6000, what do you think my chances of success are? bearing in mind at my iva meeting originally only 1 creditor turned up (largest debt)from a possible 8 creditors if I remember correctly. My IVA reps estimate 6 weeks for a decision, god I hope its quicker than that lol.
Your offer sounds fair and while it may be deemed a windfall once received, at the moment you may well have the option of staying in the forces. Therefore if creditors do reject the variation and demand it all, technically you could stay on and finish out the IVA. I do not think it will come to this as creditors are usually commercial and are particularly sympathetic to members of the Armed Services. Good luck with the offer.
Good luck from me as well. Hope you get sorted and please let us know how you get on.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
