www.iva.co.uk

Hello all, great site and found the info on here very useful when going into my IVA a few years back. I'm now back for a little advice, it’s around settling my IVA early, I know this question has asked many times I have searched and gone through a lot of the posts, however, just wanted to put my specific case out there for comment.

I'm about 3 1/2 years into my 6 year IVA, I have a mortgage but a clause in there that excludes any equity in my house be taken so this is not a factor.

If I were to let my IVA run until the end of the 6 years I would be paying a total of £12,228 from today

I have been offered 10k by a friend to offer as full and final settlement. I will be speaking to my IP on Monday about this but was interested in your thoughts, would it be a reasonable offer? Have similar offers been accepted in the past? etc.

I have missed payments in the past, I upped my monthly payment a little to cover these but after struggling again they were reduced back to the original £403pm, I was advised that my IVA was a serious risk of failing should I miss anymore payments. I am still finding it a bit of a struggle from month to month with balancing the household finances with outgoings going up and no increase in incomings. I am therefore just looking to get out and this offer of a lump sum has presented a great opportunity. Do reasons suffice as good enough and acceptable? Didn't want to start giving them any BS on the reasons, job is fairly secure and I suppose if I did say that it was at risk their next question would be redundancy money (which I would be getting a large wedge if it happened anyway).

10k is really the very max I can get so can't really up this anymore. Also, if I did offer 10k as final settlement could they make this conditional i.e. keep paying the monthly payments until you reach 10k owned then we will take the lump sum? Really don't want to go down this route as I want out ASAP!

Thanks in advance and look forward to any replies.

T

Tom - if you make the offer - but indicate that "this money is only available if offer is accepted and from 3rd party". that will protect the money.


Just curious why you have a 6 year IVA ? - as there is not an equity clause into your proposal. Is there a minimal divident stated?

They will want to know were the money is coming from.

It looks a good offer to me TOM state your reasons like you have mentioned that you are struggling,and why not add two monthly payments on top of the £10,000 in your offer to make it look more generous.you will have to maintain payments anyway until your offer is accepted which i think would be.it normally takes upto 8 weeks to get a variation meeting from the start of your offer.welcome to the forum and good luck,keep us informed.

ginger3232 wrote:

Just curious why you have a 6 year IVA ? - as there is not an equity clause into your proposal. Is there a minimal divident stated?

I was provided with an option when taking out the IVA, go 5 years and have a clause on the equity or go 6 years and have my house protected.

Not 100% on the minimal divident, will have to look at this, what is it?

Sometime the proposal - states a certain amount of money that must be paid into the IVA (minimal divident)

Sounds as if you doing what every one has to do - pay another 12 months - in leu of equity, but at least you wont have the hassle of getting valuation etc

Depending on circumstances any offer supported by your IP will be considered by your creditors at a variation meeting.The acceptance of a offer will conclude your iva regardless of terms and conditions of the iva.

I suggest that you pay a further five months at the current contractual level and then offer the £10k. Whilst the offer at first glance seems good, you don't really seem to have good reasons for exiting the IVA early, and with those extra payments it almost gets you to the figure you need. In some firms variations can take that long to put together in any case.

MelanieGiles wrote:

I suggest that you pay a further five months at the current contractual level and then offer the £10k. Whilst the offer at first glance seems good, you don't really seem to have good reasons for exiting the IVA early, and with those extra payments it almost gets you to the figure you need. In some firms variations can take that long to put together in any case.

Thanks Melanie for replying but not 100% I follow, if the offer looks good, regardless of the circumstances surly there is no harm in making the offer now? If it is rejected then fine, I give it a few months then make the offer again which by that time will be nearer to what is owed. If it is accepted then happy days! From what I understand there is no issues with me making an offer or any effect on anything else that is happening when I do this, or is this not the case?

On the face of it, Tom, you are correct. However, each variation meeting will add over £500 to your fees, and thereby effectively reduce the money eventually going to the creditors.

If you want out ASAP Tom put a offer forward now.

Personally I would take Melanies advice as she is an IP and knows what she is talking about.

Discussing this with your IP on monday Tom is the best way forward.One thing to consider that may strenghten your offer,is the funds that your Friend has offered now,may not be available in the future,say in 5 months time,because of change in circumstances to your friends status.A lot can happen in 5 months so my advice is strike while the iron is hot.Your IP TOM will guide you through any offer you make and fine tune it to give it the best chance of acceptance.Good Luck.

Let us know how you get on Tom.

Hi, just wanted to close this off and confirm that my offer of 9.5k was accepted as full and final settlement a couple of weeks back by all 7 companies on my IVA. Just awaiting the relevent doc's to come through but now debt free, with the exception of my mortgauge, although I do have a chunk of equity left in my house as they couldn't touch this.

Just one question, is there anything further that I need to do on this from my end, was thinking around my credit file, I'm sure I read something somewhere from somebody else that they needed to do something when their IVA was closed down?

Tom - You need to wait until your certificate is issued - check all three credit agencies - look out for defaults after the IVA start date - if you seen these write to Data controller at each company (enclose a copy of certificate) as ask them to remove the default date.

The IVA and defaults before the IVA will remain on file for 6 years - then they will drop automatically