To make a settlement you need to multiply your monthly payment by the number of months left and add 12 months if there is equity to be addressed.
If you have won the lottery or come into an sizeable inheritance the money to settle would be your total debt, plus fees and possible statutory interest ( currently 8% per annum), less what you have paid in so far.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Hi Paul this would be if we were to sell the house ..My first question, in the event of my husband and I selling the house and separating, is it possible to offer a f&f and just settle 'my debt'. We are currently in a joint IVA and most of the debts are in both our names. However I understand that by law there is no such thing as a 'joint' IVA and that the full debt must be split by variation between the two people holding a 'joint IVA.. am I right? My other question which has been giving me a headache after reading some of the replies on the forum. in Year 1 the IVA was in my sole name, and I made contributions into the IVA 'POT' as you keep calling it which mount up to approx £6k in year 2 a proposition was made for a joint IVA due to it emerging that one of the loans was in joint names. (so where has the £6k gone??)
we are now in year 3 and have been making contributions so why has that amount not been deducted from the original debt? has it actually been distributed between creditors or have they just kept the money for themselves??? Also last year we were asked to fill in PPI forms and agree that any repayments from that would go straight into the IVA? where is it? and why is the debt still the same? We are not seeing the light at the end of the tunnel and feel that we are just throwing money at them and the debt balance is not being reduced.
All we want to know is where i stand if I were to offer to set 'my debt' and the IVA be transferred to my husband if we separate? how does it work please help? losingfaith.com
This sounds odd because if there was a joint debt it would be paid from both IVAs and there would be no need to merge the IVAs. You need to speak to your IP for a breakdown of where the money went.
If you are separating you could offer to sell the house and offer some of the proceeds as full and final settlement. The remainder could be used for relocation costs and deposits for new homes.
There's a lot to be said about these IVA arrangements. And all of their clauses etc. Not to mention the fact that they can dip their hands into your finances as and when they please. You have no control over what is yours anymore and this was not pointed out or made clear by the debt advice line.
We had no idea that despite how much is paid into the pot you still owe the original debt + costs / interests etc. You end up worse off and your hard earned money thrown into thin air!
We didn't receive enough advice and if we'd known at the time that a DMP is far less complicated then we would have gone down that route. It was all very misleading and it's not until you are faced with major life decisions that you realize they've got you by the ****!!!
We contacted a charity based debt advice agency which I believe is run by the gov. They never mentioned anything about a Debt Management Plan. Why is there not enough advice on how to deal with your debts without any ties and clauses and clearer explanation on how these IVA's really work.
There is no light at the end of the tunnel ..!!!
Last edited by Rosiedr58 on Thu Jan 15, 2015 2:51 pm, edited 1 time in total.
It is unfortunate that you have had a bad experience of IVAs but this should not be the case. It is very easy to give any client an up to date receipts and payments account and a breakdown of every penny paid.
I am surprised that your chosen firm is unable to do that so go back to them and request it again.
IVAs do work well for the majority and DMP's also have their drawbacks. To use the example you gave :
"you still owe the original debt + costs / interests etc". This is true while you are in the IVA. However, you are not obliged to actually pay all of this and what is unpaid at the end is written off in an IVA.
A DMP, on the other hand, WILL continue, ad infinitum, until all of these sums are paid. And, at any time a creditors could demand full repayment or take you to court.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Your IP should be able to help with a figure to offer your creditors to settle your IVA, it is possible to just settle your liability with a full and final offer
