I asked Freeman Jones for the balance on my IVA and was told "We have calculated the total sum due in to close your IVA, which is currently £27,132". in context, this would bring me up to 100p in the £ including all fees, etc. Is it safe to say that every £1 I pay reduces that figure by £1 as well? Since that "balance", I've paid off another £8845 so I'm hoping that there should be about £18300 left to pay out of my share of the equity.
I'm FINALLY getting my divorce sorted which will include my STBX buying my share of the house - taken about 4 months longer than we hoped because he solicitor was being a complete A$$ and she's now sacked her. Her mortgage is agreed and it should just be a case of waiting for everything to complete. To be honest, I'd rather make 2 or 3 months payments so that I get to keep more of the equity. I know the outcome is the same but it feels better?
As an aside, she never signed the form to put a restriction on the sale of the property. Is that likely to come back and bit me in the bum?
I have asked FJ this, twice, but they're not forthcoming with an answer. How would this normally work?
1. Do I get the money and then pay FJ the outstanding balance?
2. Does her solicitor pay it all to FJ and then I have to wait for what's left?
3. Does her solicitor pay FJ the balance on the IVA and me the remainder?
What I don't want is for them to get the lot and then leave me chasing them for weeks/months to get what is legally mine. None of these companies seem to be particularly fast in reacting to anything!
Are they charging statutory interest ? If so then the amount payable will increase by 8% of the debt per annum, which is calculated on a daily basis, so your £1 payment would be eroded a little bit.
As for the second set of questions: It really depends on how FJ work. Often they will tell the solicitor what the amount will be on the day scheduled for completion and the solicitor will undertake to send FJ that amount on the day of completion (in much the same way as they deal with outstanding mortgages). Some IPs, though, want the whole amount, from which they take their chunk and give back the balance. To my mind, especially without a restriction on the title, they have no legal reason for the latter.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
They have told me in the past that there is no interest. In reality, I'll probably have made at least one more payment before this goes through so that will probably balance it out if they are charging interest.
Your 1p / £ calculation is good for 30 days, so its worth contacting us for a new one nearer the time. You aren't likely to be far out with your rough calculation, but from time to time there are disbursements (costs which we are entitled to charge to your IVA) that could make a difference.
If we don't have a restriction on the property then its likely that your solicitor will pay your share of the house proceeds to you (assuming that they are not aware of the IVA). In this case, you'll need to make the payment into your IVA yourself (although if you prefer you can of course ask your solicitor to handle it all for you). As is standard practice we will ask to see proof of those funds, which your solicitor will be able to provide.
The figure we ask you to pay in should be enough to pay all the claims, but as we go through the closure process we will confirm the claims with your creditors. Some may come in higher than expected, some may be lower (or even not claim at all). It is possible that there may be a surplus and we would refund this to you, of course.
I hope that helps, if you want more detail please email me via ian.williams at FreemanJones.com.
Thanks for that. I did e-mail yesterday but haven't heard back. I'll e-mail you directly, if that's ok. I asked about the mechanism for payment twice back in November time and never heard back. Hopefully a direct contact will be more efficient
