How does a 3rd party settlement on iva work? My in laws dont know about our IVA with Payplan and keep offering to help us to buy a bigger house, obviously that isn't an option whilst in an iva, if we were to tell them about the iva, they might be able to help us with this instead, but how much would they need to pay, is it the amount of our remaining iva payments or the original outstanding debt?!
We have just had a full and final accepted by the same company and we offered remaining payments and it was accepted with no modifications. The only advise I would give is it took 4 months to go through so in theory we paid 4 more payments than anticipated in the f and f I would have got the relative to offer less if I had known as our payments were 800 a month much was a large amount extra Good luck whatever your decision is. I must say I couldn't have done it without the expert advice and support of this forum. X
This seems harsh as if the variation had have been called straightaway you would be £3200 better off. Seems that creditors have benefited and your IP firm got a bigger fee as a direct result of the delay!
I would couch the variation in terms that allow for the offer to be reduced by any amount paid over between making the offer and acceptance. Either that or agree a payment break between offer and variation meeting(if the offer is refused the "saved" payments can then be handed over to catch up).
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Hi no they refused to take a reduced payment so paid the full offer plus 3200 monthly payments. Gutted but it is overwith. Wish I had negotiated minus payments to date but was just so desperate. We did have a equity clause and that was a struggle. Our ip 85 percent rule appeared to be different to everyone else's working out so we had to struggle to get lower valuations. Another nightmare we worked out only had 2k each in property and ip said over 5k each. Glad it is over x
Sounds like a nightmare and pity you have a nasty taste in your mouth. Not all IP firms work like yours did but your experience will put people off from IVAs which is a shame.
