www.iva.co.uk

Hi,

I'm 2 years into my 5 year IVA. I was made redundant in Jan 2010, in which it took 3 months to get a new job, beit on the other side of the country! My IP gave a 5 month payment break in all to allow for unemployment and moving costs. This has been added on to the end of the arrangement.

I have a major issue regarding previous Landlord. I won't go into the extreme complexity of my case, but he's claiming £7,000 in lost rent. My solicitor informs me that I should make a settlement offer of £2,000 (net of what he owes me in counter claim, I won't go into detail) to avoid court and inform him of my IVA status.

I don't want to endanger my IVA. If I let him take me to court and successful, the fees involved would mean I will have to pay way in excess of £2,000 which would certainly endanger my ability to pay and bankcruptcy may be the only option.

I am to request a 3 month payment break, which amounts to £2,000 in order to pay the settlemt. If I provide all evidence of the Landlord's claim and solicitor's advice, what is the liklehood of successful acceptance? If they don't then there's a chance the IVA will fail.

Many thanks as always.

Hi and welcome to the forum. I don't know the answer I'm afraid but someone who does will be along so stick around for a bit. Is the debt pre or post iva? and do you actually owe the money?

It's during the IVA.

The case is complex, regarding surrender of a fixed term tenancy. Advice doesn't come cheap nor will a court case. The best advice I had was that in any event will be prove extremely expensive regarding costs. Great news if I win, but I still have to fund it with a significant amount of money. If I lose, I'm completely broke.

Therefore, solicitor has advised me to offer settlement which would equal expected costs, which is also the net figure left should we counter-claim.

It's a sour note but in the great scheme of things, the best option as at the end of the day the IVA will not be put in danger. If I went to court, it will.

It is definitely worth talking this over with your IP before committing to any offer of settlement. A payment break may well be an option as it gives your iva the best chance of success and creditors aren't actually losing out on anything. One of the professionals may be along a bit later with some advice. Let us know how you get on x

I agree that you need to speak to your IP about this.

This is all very well so long as the landlord accepts the offer. Is your solicitor confident that the deal can be done?

Thanks for responses, guys.

Yes, the Landlord made a WP offer of settlement that isn't too far north of what we're to offer in return, so we're confident he'll accept.

Then I would go for it if your IP is happy with the payment break.