www.iva.co.uk

Hi, I am putting together a letter for a full and final settlement to my IVA (with DebtFree Helpline. The advisor at DFH said that when putting in the offer I should include that I need living allowance to get me through. I have redundancy of £26k, My debt was £24k, IVA agreed £21k. Ive paid £5k so far. I was thionking of offering £18k. I owe parents £3k so would leave £5k. Is this a reasonable offer? And any ideas how I could word my letter as I'm guessing I need a valid reason for not offereing the £21k I owe.

Hi and welcome to the forum.

If you are offering £18k on top of the £5k you have paid then it sounds like a good offer to me.

If they do refuse though, you may well have to pay across a good portion of the redundancy across to your IVA.

Hi
Offer 18k stating that you need to retain 8k to cover living costs for 6 months whilst you look for a new job. I wouldn't mention that you owe your parents 3k unless this was included in your IVA proposal.
They could insist on the whole amount less six months of your usual net pay, how much is your net pay each month ?

Regards

I was on £2000 per month, I had a 2 year payment break for maternity leave/career break and was due back May 2011.

Clarification on the amount please. Owed 24k in total, paid 5k so owe 21k I assume that I would pay this amount back (not the agreed IVA reduced to 21k - so if continued paying then would owe 16k)

Also, can the crditors ask for more than I owe - I get 26k, can then ask for more than the 24k i originally owed? Does the 5k I paid already get taken of the total.

I am thinking I should pay the outstanding amount.

Sorry, I am currently on benefits as my daughter was born in 2009 so have not contributed since June 2009

You will always owe the original full amount to the creditors, plus fees, until the IVA has completed.

They could ask for the whole amount as Andy says.

Speak to your IP tomorrow as suggested and see what they say.

Thanks.

kallis3 wrote:

Hi and welcome to the forum.

If you are offering £18k on top of the £5k you have paid then it sounds like a good offer to me.

If they do refuse though, you may well have to pay across a good portion of the redundancy across to your IVA.

I would offer 50p in the £1 myself but see what the IP says

If I was made redundant again ( I was out of work for 10 months in 2009) the last thing I would want to do is give all my redundancy pay to an IVA.

If I didnt get a job after 2/3 months I would then consider bankruptancy

To be honest - if it meant that I could pay off my IVA then I would pay it all across and then sort out benefits for afterwards if I couldn't get another job.

Hi Soda in a case like yours its a pity your IP can,t recommend a offer that is likely to be accepted.so to test the waters i would make a offer of £12000,stating the reasons Andy as already mentioned leaving you £14000 living allowance for you and your child that you have to support.Good Luck.

You beat me to it stewpot.

MRBLUESKY wrote:

Hi Soda in a case like yours its a pity your IP can,t recommend a offer that is likely to be accepted.so to test the waters i would make a offer of £12000,stating the reasons Andy as already mentioned leaving you £14000 living allowance for you and your child that you have to support.Good Luck.

I would suggest this sounds reasonable, better return then bankruptcy.

Its a personal choice of course and subject to IP approval

kallis3 wrote:

To be honest - if it meant that I could pay off my IVA then I would pay it all across and then sort out benefits for afterwards if I couldn't get another job.

Problem with that approach, Jan, is that the various benefits agencies will work out your entitlement as if you had retained the whole amount. Losing a lump to pay creditors isn't looked on too kindly.

I'd be happy just to get rid of the debts to be honest and as we have hubby's income to pay for the mortgage I could cope with that.

Less than three years until I can retire1

I'd probably do the same, just to get back on a level playing field --- I can always send the young 'un up the chimneys :0) And .. I still have a spare kidney to sell.

Three years ???? OOooooh .. I have to hang out for another 6 ----- if they don't change the rules in between times. As it is I think I will have to wait an extra year for the state pension to kick in, but it looks like that will be a bit more than it is now, if this new system gets through.