Hi. I'm coming up to my final year of my IVA. I've paid £100 a month, no payment breaks or anything. I gave my IP permission to claim any PPI (which i didnt think I had) and they got £1700 which went into my IVA. As of September my employment will end and I will start a nursing degree, so I called my IP to discuss my options as the payments will no longer be affordable. They suggested a variation meeting be arranged to close the IVA on payments to date but I'm worried the creditors won't agree and what will happen if It's rejected. I have 14 months left at £100 a month and don't own my home so no equity or anything. The IP said they can't make any guarantees but that there's a good chance it will be accepted at this point in the IVA. I don't want it to fail though so if they reject this would I need to offer a settlement figure?
It sounds good to me and your IP company obviously think so as well.
Make no mention of a settlement - if anything it would be a full and final but say nothing at the moment. Where would the funds be coming from?
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
My IVA (well two interlocking IVA's with the now ex wife) was concluded on a F&F based on payments made to date half way through out terms. This was due to me becoming a single parent and my disposable income hitting the dirt. The creditors accepted. So it does happen
Of course all circumstances are different, but it certainly helps to have the support of your IP, as you appear to have.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Fingers crossed - make no mention of a possible full and final payment at the moment.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
If creditors do reject the variation you can make the offer then as the variation meeting can also be adjourned. It looks like your IP is trying to get the best deal for you so at worst it may come down to a little bit of haggling at the time.
If the variation is rejected the IVA just reverts back to its original state. Creditors rarely ask for bankruptcy proceedings unless HMRC are a major creditor as it means the funds have to come from the IVA 'pot'. This means less for them so that particular route is not going to happen.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
The IP could insert a resolution about BKY if creditors object but insist that they take this out.
Do not mention you have the F&f gift up your sleeve as if creditors get wind they will likely object to the payments to date variation and await the lump sum offer instead.
Lisa Thomas wrote:The IP could insert a resolution about BKY if creditors object but insist that they take this out.
Do not mention you have the F&f gift up your sleeve as if creditors get wind they will likely object to the payments to date variation and await the lump sum offer instead.
Only mention it if the variation is rejected.
Sorry, BKY?
I haven't said anything about a settlement to my IP. I only talked to my parents about it a few days ago so there is no formal offer as yet. They specifically said they would only offer if the paid to date variation is rejected. My IP is drafting the variation report at the moment so I should hear back from them soon. As I understand it they have to give my creditors up to 4 weeks to decide.
If it is accepted on paid to date, how long after that would I get a completion certificate?
The certificate should follow within four to six weeks of the final meeting. In theory the variation could be challenged by a creditor so the IP has to wait until that period has elapsed and during this time the final finance checks will be carried out.
Michael Peoples wrote:The certificate should follow within four to six weeks of the final meeting. In theory the variation could be challenged by a creditor so the IP has to wait until that period has elapsed and during this time the final finance checks will be carried out.
Ok. WHat final checks do they need to do? Just so I can have everything ready if and when they need it. I know that they have already checked with the PPI team that all investigations have been completed.
