www.iva.co.uk

I would be really grateful for some advice please.
I have an IVA which has been running for 13 months now. The total amount of the IVA is £11,223.18. I currently pay £153.74 per month and to date, I have paid £2,343.60 which included a PPI payment of £696.21. I have another 2 PPI payments about to settle totalling £2,314.48.
This plan is a huge struggle for me and quite often family/my partner (who does not live with me) help me by way of paying for food etc.
My partner has suggested that I go to the creditors and offer a reduced amount by way of full and final settlement. I did speak to Payplan about offering them £1,500 but they have said that because I am due to finish paying my brother off shortly (which will free up about £50 per month), the creditors will see it that I can afford the IVA. This is really affecting my health now. Having suffered from depression following the breakdown of my marriage (which the IVA is a result of), I am struggling mentally on a day to day basis. I'm really not sure I can cope with another four years of this.
Do you have any suggestions please? Do you think the creditors will settle for a larger amount? And, if so, what do you think is reasonable?
Many thanks,

Hi. As things stand, and assuming thee is no equity involved, the creditors are looking at getting another £7225 from you (the PPI refunds do not alter the arrangement, but merely increase the amount the creditors get in the end). This is ignoring any increase due to not paying your brother (which, Payplan would argue, would add another couple of thousand).

The creditors would be looking to get as close to that £7k as an offer, but might take the PPI into consideration. I would say the minimum would be £5k.

I appreciate that the IVA is a huge struggle, but far, far better than fighting off creditors and collection action.

How much are your total debts ? If the £11,000 maybe a Debt Relief Order would be more appropriate, if you can get the calculations to show a smaller disposable income and have no assets to speak of. Have you considered Bankruptcy ?

Hi there and a very warm welcome to the forum.

I'm sorry to hear you're struggling and having to depend on your family or your partner to help with the basics.

Would a family member be able to help increase the offer, hang on in there for someone to give a suggestion of an amount as I've no idea to be honest. However, I do want you know if you're feeling down just come on and chat in here we're allo in or have been in the same boat at one time or another. I hope things get easier for you very soon.

x

I am sorry to hear of your problems and agree with Foggy that BR might be an option. If you have more than £50 a month DI then a DRO would not work for you.

Like others sorry to hear how you are feeling. The love and support of your family is great and something you need to continue using in this difficult time.
Have you asked for a review of your income and expenditure? An iva should be based on affordability and should not result in others having to regularly offer you financial support.
If you are not a homeowner bankruptcy maybe an option to consider but specialist advice should be taken to ensure it is the right route to take. Maybe the debt adviser at your local CAB is a good startinh point.

We are always about for a chat so don't be a stranger on the forum x

Hi

If the IVA is affecting your health then your IP and your creditors should be sympathetic and a low offer may just be accepted

Write to your IP with as much info as possible and also with details of your full and final offer

Good luck

Regards