Hi, I have 9 more months left of my IVA. This equates to about £3600. I am close to the end but every month is a struggle.
Last week, I was knocked of my cycle by a car and as a result am getting £2250 for compensation. I was hoping to offer this as a final settlement for the IVA but when speaking to my case officer she seemed to sugged that the process of final settlement takes about 6 months and suggested that the offer would need to be somewhere between what I have remaining for the IVA and the remainder of the original debt.
What are the rules for final settlement? If I rustled up maybe £3000 perhaps, would that be an offer that would be taken seriously.
I have found the last 4 1/2 years of my life the hardest I have been through and although I accept that I am responsible for that, I would take any chance for it to end now.
Hi, sorry to hear of your accident and wish you a speedy recovery. Does the compensation come through quickly in respect of your accident? With only 9 months the full and final could take the timescale as discussed. Others will have a view so let's keep this bumped up for others to comment on.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
That seems a very long time for a straightforward variation and I actually think your offer is reasonable-if proposed now. The closer it comes to the end of the IVA, the more likely it is that creditors would let it run its course.
If your IP is adamant that they will not send out the variation for six months there is little point in bothering with the offer so try and put a bit of pressure on and get them to send it out. Creditors normally need a month's notice for a variation and it should only take a couple of days to draft so if it were our firm we would offer the £2250 plus possibly payments for June/July with an aim to close down August. I think that would be more than fair.
Thanks for the excellent advice, I guess the worst they can do is say no. I would pay up to July plus the 2250 and hope that it is enough.
One final question, what would happen with my current claims for PPI refunds? I am not looking to gain anything for myself from this process and am happy for it all to go back in to the IVA but if I end early, what would happen?
The PPI can be reclaimed by your IP afterwards but you would be clear of the IVA. This can be done by assignment and your IP should be able to discuss this with you.
The £2250 is almost certainly exempt from the IVA as it must have been awarded for 'pain and suffering'. If creditors refuse the offer you can just pay it down but spend the compensation as you wish. You will need to show your IP the award to prove it is exempt but I am sure there is no problem there.
Thanks for the excellent advice. Maybe I should have used this website more during my time and not dealt with it all on my own. I really appreciate the help and no matter what happens, the end is definitely in sight.
Proposed variation aside for a minute, with only 10 months to go until formal closure, it would be wise now to see what intentions your IP has with regard to PPI mis-selling claims so that this is not left until the last minute, and thus may delay your closure. Which firm are you with yade?
I am sure that Payplan are well up to speed with the processing of PPI mis-selling claims for their clients, but no harm to check now to ensure that all that needs to be is already in hand.
