will settlement figure be enough please help

[traceyh]

i have had an iva for nearly a year i still owe 26k. i have a serious illness and after all the stress my family are willing to give me 10k as a settlement figure will it be enough please help

[Adam Davies]

Hi
Can you post further details please
Total original debt,monthly IVA payments,amount paid to date,equity in property[if you have one]and is there a requirement for you to release equity in the fourth year.Finally has your income reduced from when you first started posting ?
Regards

[traceyh]

i owed 30k in june i would of been paying it for a year.i pay 500 pound every month and never missed a payment.i have no equity in my house. i have contracted a disease that there is no cure for and i am finding the monthly payments really hard.i can get 10k of my family

[Reviva UK]

Hi traceyh

Really sorry to hear about your situation.

As you are currently making the payments the IP is unlikely to accept a negotiated settlement because they can't see that you have a problem.

are you still working - if so what do you do for a job?

i would suggest the following :-

Step 1. speak to your IP and discuss the situation and discuss your concerns regarding the ability to continue.

Step 2. If you are unable / nervous to discuss with IP ask a friend / family member or professional representation to do it for you.

Step 3. If your ability to continue making payments is seriously at risk you may want to explore the bankruptcy route to see what the consequences are etc. You say you don't have any equity at present so on the face of it your house would not be at risk.

Step 4. You probably have a 4th year equity clause so while you have no equity now you probably will have in 3 years - this could cause a further problem.

Also are you able to continue to make mortgage payments?

[Adam Davies]

Hi
Sorry to hear of your illness
Am I right in saying that you are returning about 23k to your creditors,a 75p dividend ?
You have paid in about 5k,so 18k left.You will have a saving on IP fees of around 3k so 15k would return the same dividend.Although you say you have no equity now,you may have in four years time,Was there an equity release clause ?
If your IP can show your creditors that your health may affect your ability to pay your IVA over the term then they may accept the 10k.However they may want to wait and receive the remaining funds plus any possible equity.
Speak with your IP and see what they have to say,you really need your IP on your side to guarantee success
Regards