My circumstances keep changing so fast I am getting whiplash. My husband has just been made redundant and his settlement was £57000. We are 4years and 4 months into both our Iva’s. I understand that this has to be paid to the IVA so I was advised to offer a full and final of 100p in the pound. The original figure my husband owed was £22759. My original figure was £27222. He pays £280 a month about 20p in the pound and I pay £310 again around 20p in the pound. So I estimate he has paid off around £14500 and I have paid £16100. The settlement figure that came back for my husband was £22398. On looking at my most recent protocol annual report I saw that they had put him down as having £27131 in unsecured creditors and I have £31263 which are both considerably more. Does anyone understand this. Many thanks.
Most creditors claims are above the figure we give when setting up an IVA as they will try to cram in every penny of interest and charges accruing before the date of the IVA starting -- which is often a month or two after we obtained the last "amount owing".
To settle a debt of £22759, using your original figure, would take in the region of £28k plus statutory interest of around £7k, so £35k less the payments to date (your estimate of £14.5k) ... leaving a further £20.5k to shell out. So they don't seem to be that far adrift.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thanks for the reply Foggy. That sounds like just under a £2000 difference. Do you think it’s worth asking about it. At 51 I don’t know wether he will be able to secure a job and we are still in a mortgage so I am trying to keep as much as possible while satisfying what we need to. He was also thinking of letting me have enough money to offer a full and final of my remaining payments which would be around £6200 to cover my remaining payments to the 72 month mark. Does this seem reasonable?
By the time a F&F went through you would be looking at around 20 payments (including 12 for equity release) of £310, so, yes, £6200. I would offer £5k -- 5.5k --- but, obviously the higher the better.
I would also get a detailed breakdown of the settlement figure they have come up with, so see exactly where you might be adrift and, if statutory interest has been factored in, make sure the proposal didn't exclude it from the start (mine did).
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
When they do send me one I am not entirely sure I would understand it properly. I am not a stupid person but some of it I can’t make head nor tail of. Could I try a little less say £20000 or would they even accept it. Or is it easy just to cut our losses and pay up. I am not even sure how to do it. Is there a form I have to fill in and do I stop my direct debits. I find when I try and ring them I am on hold ages, get cut off frequently and they always sound vague.
If it were me I would "close off your husbands iva" with what is due - in my opinion little point in offering less as creditors will be aware of his redundancy money and will push for full amount.
Regarding your offer - I would offer £5/5.5k - although again creditors may expect nearer the actual knowing your husband is funding through his redundancy payment.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
The phrase "Full and Final" is a misnomer -- it has little meaning, being neither "full" nor "final" --- it just really means "lump sum offer". There is a template of sorts here: https://www.iva.co.uk/letter6-f-and-f-offer-during-iva
As luluj says, they are unlikely to negotiate the settlement figure on your husbands IVA, knowing that the redundancy payment is coming to fund it (which, is theirs anyway).
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Don't mention the word settlement as they will expect the whole amount - word it as a full and final.
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
Sorry if I have missed this but where are the funds coming from for you to make a F&F offer if your husbands full redundancy pay has to be paid over into his IVA?
Lisa Thomas wrote:Sorry if I have missed this but where are the funds coming from for you to make a F&F offer if your husbands full redundancy pay has to be paid over into his IVA?
Settlement due to IVA iro £22k and redundancy compensation is around £57k. Lisa
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
