Could payments be reduced or would an early offer be a better option ?

Get expert opinion. This is the place for new questions to be posted.
3 posts Page 1 of 1

mark246

User avatar
Posts: 1
Joined: Wed Apr 26, 2017 11:51 am

Post by mark246 » Wed Apr 26, 2017 11:51 am
Hi our iva repayments are 250 pounds a month my wife went self employed last year and it hasn't increased her earnings any we are saying a family member is helping us with lrepayments as we were told our iva would fail if we couldn't prove our ability to make the repayments we are three years in and really struggling to meet the payments could they be reduced or would an early offer be a better option my mother is willing to cash in her ica of 4000 there is 20000 equity in my property

Michael Peoples

User avatar
Industry Expert
Posts: 15189
Joined: Mon Nov 03, 2008 12:36 pm
Location:

Post by Michael Peoples » Wed Apr 26, 2017 12:47 pm
Either option is reasonable and creditors are usually sympathetic. Try the full and final settlement offer and produce some evidence of the decrease in earnings.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com

Foggy

User avatar
Posts: 33396
Joined: Fri Dec 17, 2010 11:14 am
Location: United Kingdom

Post by Foggy » Wed Apr 26, 2017 1:08 pm
With that sort of equity you are looking at an extra 12 months. So three years left at £250 is £9000 which the creditors are expecting. Based on this £4,000 might be a little light ( but, you never know). I would, first, attempt to get payments reduced. IP's normally have the discretion to reduce by up to 15% without going back to the creditors (any more would require a variation meeting).
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
3 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”