www.iva.co.uk

Hi

I am a new user to this site and very impressed by what I have read so far!

I am entering my 3rd year of an IVA and have just taken voluntary redundancy. I would like to settle my IVA but do not know what I should offer as F & F settlement of the IVA?

My IVA was set up 4 months after I sold my house. I do have the 4 year clause which means that I have to pay 9000 pounds (this will have to come out of my redundancy funds since the money from the sale of the house was spent on bills etc). Also, the payments on my IVA were increased in the third month of the IVA (I was informed that I would need to suspend my pension and make additional payments - I didn't suspend my pension and carried on paying as well as making the additional payments to my IVA). So far I have made 15 payments on my IVA (but have missed 8 payments) and am unsure as to what offer to make to end the IVA since I have only limited funds and need to ensure that I leave myself with something in order to pay the rent and other living expenses since I no longer have any income. I do hope someone can give me some advice on the best way forward.

Hi
Your case is a little unusual in that you have an equity release clause but sold your property prior to your IVA.Is your IP aware of this ?
Also you state that you have missed eight payments,again it is unusual for an IP not to have failed your IVA because of this.
What were your original debts going into your IVA and what dividend was pledged.Also how much per month have you paid in ?
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

Hi Andy

Yes, my IP was aware that I sold my house prior to the set up of the IVA. I was allowed to miss 12 payments over a 60 month period.

My original debts totalled 124.610 across 14 creditors. The dividend pledged was 25p in the pound. So far, I have paid 2 x 514.26 and 13 x 611.59.

Bindy

Hi
If the 9k was set in stone then you will need to find this plus the 31k and IP fees to date,less payments made.I calculate around 35k.
This will return the original dividend plus the lump sum from your equity.
However your own IP will be able to give you a better answer.
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

But I don't have 35k! If I were to make an offer of 25k do you think that this would be acceptable? In my original IVA paperwork it states the total estimated distribution to creditors as 27,862.82. To date I have paid 8979.19.

If my offer was refused, is there an alternative (for eg. could I pay my equity payment of 9000 pounds plus the 8 missed payments and carry on paying until I find another job?)

Hi
As you have no income then it may be that creditors will accept a lower payment.You have to remember IP fees have to come out of what you have already paid.
Redundancy money is for you to use until you find employment,however it may fall under the windfall clause once you find a job.You really need to have a chat with your IP and discuss your options.
Regards



Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

As Andy says you have a good chance if this is your best offer, but remember you have to live in the meantime, so perhaps you should use the money to catch up with your payments in the meantime until a new job is found and then reconsider your position.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

Hi Melanie

Many thanks for replying. Do you think my best option would be to pay the 9000 equity release plus the 8 missed payments and say the next 12 months payments in advance (wouldn't I have to take off the increase in payments because I am no longer paying into my pension?).

This would leave me with just enough living expenses whilst I seek employment.

Many thanks

Bindy

I think that that is a very sensible idea Bindy, but discuss this with your own IP directly.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

Many thnaks Melanie! I will do this and let you know how I get on.

Bindy