www.iva.co.uk

Hi All,

Hi I am currently on an IVA with stepchange, the total I owe on the IVA is £12120 and have paid 15 months of it.

That leaves a reminder of 45 months. My first year I paid £202 per month then on the first review it was reduced to £172 per Month.

So the calculation of what I paid until now is 12monthsx202=£2424 and 3monthsx172=£516, total paid for 15 months £2940

So if I deduct £2940 from £12120 the remaining will be £9180.

But I have 45 months left at £172 per month so that £7740 left to pay. I hope that makes sense.

I need to make a final offer to my creditors but I am not sure what is an acceptable amount? My brother can gift me £8000 to help end my IVA, is that amount acceptable or I should go lower?

I am stressed and anxious at work its causing me a lot of mental stress and I don't need that in my life, I just want to end the IVA and resign so I can look for a comfortable job without worrying of an IVA to fail, can someone advise me please?

Thank you.

A F&F offer is usually based on remaining payments, so, in your case £172 x 45, assuming you are not a homeowner (If you were a homeowner you would need to factor in an extra 12 months payments in lieu of equity release).

So an offer based on £7740. Often these offers can be reduced slightly, to allow for time saved, administration time, effort and costs saved and the 'bird in the hand' factor. So, maybe an offer of £7k would do the trick, but, obviously, the higher the better.

I have seen low offers accepted, but also high ones refused.

Thank you foggy, no I am not a home owner.

Thanks for your help

Sorry forgot to add, if I offer 7K and its rejected can I make another offer stright away or I'm not allowed to do so?

Also don't forget to stress that this money is only available for a full and final and will be withdrawn if not accepted.

You can make another offer but don't let them know that until after your meeting, this is supposed to be your best offer.

Fri Jan 28, 2022 2:15 pmkallis3 wrote:

Also don't forget to stress that this money is only available for a full and final and will be withdrawn if not accepted.

You can make another offer but don't let them know that until after your meeting, this is supposed to be your best offer.

Thank you Foggy and Kallis, your inputs are very helpful! I will contact them on Monday

Hi again just a quick question. I have a car but it's value not over £2000 they let me keep my car during my IVA because I use it to travel to work. Now when I make the F&F offer because I am leaving my job, are they going to ask me to sell my car or not?

Thanks

They shouldn't do -- that car will have been excluded as an asset and the F&F based solely on the cash offer you make.

Tue Feb 01, 2022 4:54 pmFoggy wrote:

They shouldn't do -- that car will have been excluded as an asset and the F&F based solely on the cash offer you make.

Thank you Foggy

Let us know how you get on Mark24

Hi All

I’m in a similar situation to Mark24 so this information has been invaluable, thank you. I signed up with Freeman Jones/Financial Wellness group but my IVA has been transferred to Creditfix (which I’m very anxious about as all I see online is a bad service). I’ve called them this week and it’s not been a great start to our relationship (comms are poor!).

I’m looking into an F+F (a grandparent may be able to gift me the money) but wanted to get my ducks in a row first.

My original debt is just shy of £24k and I’m 14 months into my IVA. I’m a homeowner and my current arrangement is:

4x payments of £164.31 (they included council tax; I wasn’t in debt to them but apparently they class this as a debt?)
56x payments of £83.03
12x payments of £83.03 (if unable to release equity from my home)

Total to be paid back is £5813, and so far I have paid £1654. Leaving a remaining amount of £4,159.

I was considering a proposal of £5000 to settle and close it early but wanted opinions on if this seems attractive to the creditors?

Creditfix also said they would need to see my grandparents’ bank statement to check they could afford it which seemed a little off to me. I was under the impression that she would need to write a letter and provide ID. Surely if they see her bank statements they could use this to their advantage and decline it or ask for a higher settlement amount.

The IVA really is taking a toll on my mental health (to very dark extremes) and I just want free of it’s constraints.

If the arrangement continues 'as is' your creditors are expecting a further £4800, or so, assuming the 12 month extension. So a F&F offer of £5,000 is a good one.
As for sight of bank statements, this is for money laundering regulations to ascertain the source of the funds. Also, from the IVA perspective, it is to prove the funds are actually available. As far as I am aware, creditors do not see this, but rely on the IP's verification.
It is not up to CF to accept or reject your offer, or, indeed, to dictate the amount.

Thank you for your reply. I also had been wondering re my pay arrangements:

I’m currently paid 4 weekly and my IVA payments have been set up to align with my pay dates (£90 per month, but I pay £83.08 4 weekly) As I’m paid twice in once month I end up with 1 period in the year where I have extra funds (mortgage, rent and a few bills). Am I going to be expected to pay this into my IVA? They are aware of me being paid 4 weekly and have been since it was agreed.

You shouldn't do as you have already made the payments due from this 'extra' income in your averaged out 4 weekly payments ( although you have an 'extra' incoming, you also have an 'extra' outgoing payment to compensate). But .... CF are often a law unto themselves !

Thank you, that’s what I thought.

They are aware I’m paid 4 weekly (as they agreed to change my pay frequency to match it) and have seen my payslips that show 4 weekly pay alongside my monthly calculated I&E.

Yes, the CF reviews are dreadful. I’m very worried that they’ll start playing silly b*ggers soon with me. So far my IVA has gone without a hitch so perhaps they’ll be kind to me with that in mind. Let’s hope anyway…