Variation Meeting - Due to my poor health, being off sick, going onto reduced pay and now reduced to working part time, my IP has suggested (after I&E review) that we approach creditors to ask for payments made to date be accepted to close IVA.
They would not, however, advise of the chances of success, only that they have a high acceptance rate. I do understand them not wishing to possibly be quoted in the future, if things worked out differently but I guess all of us would like some idea of the chance of acceptance.
I had made 3 years payments of £24,300K (including PPI) against an original expected return of £33K, which increased to £45K after my wife returned to work.
One of my concerns is that I was advised that the IVA arrears may be an issue with the creditors but this is due to not making any payments for the last 7 months.
Due to my illness, it will be a long and uncertain path to recovery and unlikely that I will return to work full time in the near future.
Any thoughts on how creditors may react to the proposal? What kind of things will they consider to arrive at a decision?
Hi Gareth. It is a commercial decision, based on what they think will give the best return. In your case I imagine they will consider the chances of the possibility of more payments in the future. I get the impression that they are taking realistic views these days and, apart from anything else, are keen to remove toxic debt from their books.
If any of the debts have been sold on it is possible that the buyers will make their money back on what has been paid to date.
As you know it is impossible to second guess the creditors and all will hinge on how well the offer is put forward by your IP.
Best of luck with the offer.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Creditors will take into account your payment history prior to the problems and usually they are sympathetic if changes on circumstances are beyond your control. Best of luck from me too and I am sure your IP will be fighting your corner.
I would have thought that this offer has a really good chance of acceptance, Gareth, particularly if your debts have been sold on to purchasing companies.
Thank you all for your comments, much appreciated. I guess if my IP is suggesting this approach it must have a good chance of success.
I'm worried most about the possibility of creditors failing my IVA after all this time, if they didnt accept the proposed completion, then I'm not sure where we will be!
I know some of the debts have been sold on.
