Borrowing off family and friends to meet IVA commitments

[toddy2]

Hi All,

I have been a reader of the forum for a while now, but this is my first post.
Me and my partner entered IVAs 5 years ago. It was extended to 6 years as we were unable to release the equity needed.
At our last review I informed my IP that my partner had been made redundant (still not working)and I had taken a 25% paycut. My IP wasn't too helpful, so we've been borrowing off family and friends for year 5 to meet our IVA commitments.
We are now in year 6 and have exhausted the money we can borrow off family, with the exception of my mother who is prepared to re-mortgage to lend us some money. When I asked my IP for a payment break (only having had 2 during the course of the IVA) in order to arrange mothers remortgage, I was informed it was not possible to extend it further than 6 years. I also asked what would be a likely full and final settlement figure, all I was given was the outstanding balance, told this is all they can advise. Overall really unhelpful, almost as if though they are trying to make me brankrupt!
Any advice greatly appreciated...

[Foggy]

Hi. The IP can only advise to offer the outstanding balance as F&F (however, some are more helpful with advice than others)as that is what the creditors agreed to in the first place. You, however, can instruct him / her to make any offer you feel reasonable and he / she is obliged to put it forward. However, a variation meeting will add in the region of £500 to the amount owed.

At this late stage the creditors will see no benefit from accepting a F&F so it is probably a waste of time and money putting one forward. In any even you would be halfway there by the time it was arranged and dealt with.

A payment break should be possible, though, if your proposal states the IVA cannot run more than 72 months, a variation meeting for this will need to be called.

There is a possibility ( you will need to check your proposal) that your IP is allowed to reduce payments by up tp 15% without needing to consult the creditors. Not much but at least it might help reduce the burden a little.

Which company are you with ?

[toddy2]

Thanks for the response, I'm with Payplan. I'll check the terms to the length.

Just felt they were being difficult, as you say by the time the f/f is sorted may as well let it run it's course.

Thanks again.

[kallis3]

Hi and welcome.

You could always see if Payplan could get your creditors to accept what has been up to now as a full and final. You are so close to the end that it is in no-ones best interests for it to fail now.

Given your circumstances they might agree to it.

[flumpy dog]

hey toddy hope you get a resolve xx fd

[plasticdaft]

Shocking behaviour from payplan. A full and final offer close to the original expected dividend would be worth proposing just to end it. They arent doing their reputation much good by offering the help they have to you,namely none!!!

Paul