advice needed

[midnight-herald]

Hi,

i finally got a reply about a settlemnt of my iva, my original debt was around £20,000, under the iva if i let it run i am paying back round about £12.000, according to them they want a settlement figure of £23,417.17???? and i have to offer as near to that as possible? this includes an early settlement penalty of at leat £2,000,
Is this correct that is what i must pay back?? as if thats the case i might as well just struggle on an pay the monthly payments as i will end up paying more back than i originally owed[?]

[MelanieGiles]

Have they provided you with a calculation of how they have calculated that figure. It may be that creditor claims have increased since your IVA was accepted, and that you have to fund a minimum dividend level. And what do they mean by an early settlement penalty?

[midnight-herald]

this is what they sent


total funds paid to date : £1,500
bank interest 31p

fees paid

nominees fee £788.94
Supervisors fee £ 85.95
office holder expenses £275.09
VAT £196.18

Balance held £154.15


Actual claims to date £17,690.00
Provision for further claims £2,843.82
Outstanding fees and disbursments £100.00
Meeting fee £500.00
Early settlement fee £2,000
Vat £437.50


Full and final amount £23,417.17

i can make no sense of all of this any help would be appreciated

[MelanieGiles]

You should definately query that early settlement fee - I suspect that they mean supervisory fees but it does not cost any more to close a case in year 2 than it does in year 5!

And they seem to be suggesting that you settle all creditor claims in full, rather than returning the dividend originally pledged - which is what the settlement figure ought to be based on.

Lots of questions still unanswered I am afraid, and I think you have to revert back to your IP on the above points.

[midnight-herald]

Ok thanks for you advice, the company who are dealing with my iva is debt free direct and they are just not very helpful at all and insist that is what i have to pay if i wish to settle, which am not at all happy with as i am struggling to pay at present as they based the iva on my overtime, also they insisted at the time i was paying a shortfall in my council tax and i told them i wasnt, my original payments were 171 a mnth and went up to 191 due to the "shortfall", they have also now requested my pension details and i was led to believe this would not be touched as i make minimum contributions, its all getting very stressful as they just arent very helpful, thanks for you help its much appreciated[:)]

[MelanieGiles]

Try and correspond directly with your IP rather than staff members - but I accept that this might be difficult in the firm that you are using, where I believe that the IPs have little direct involvement with their clients. You could send an e-mail to them.

[Lisa2009]

Hubby was with DFD. He was given a rediculous settlement figure when he first asked for one (call centre staff dont have a clue)
He emailed his IP direct. IP didnt reply but he was contacted by a really nice lady who did know what she was talking about and he got a more reasonable settlement figure.

http://www.insolvency-service.co.uk/newipsearch.htm

Click on that link and type in the name of your IP to get his/her email address.

Contact them directly and put your phone number on the email.
Hubby was called back in a matter of minutes.

Good luck xxx

[David Mond]

I will get someone at DFD to look into this for you as this is ridiculous.

[David Mond]

He is away unril 3rd November - will chase then

[midnight-herald]

Thank-you so much for all your help all of you i realy freaked when i got the settlement figure!! have had enough stress to last me a lifetime and that didnt help, but you have all made me feel a bit better, Thank-you

[David Mond]

A F&F should not be as expensive as indicated - someone has got the figures wrong.

[midnight-herald]

well i did wonder why it was so high,as over the 5 years am paying back a lot less than that, think it worked out about 11,460 and my original bebt was bout £20,000ish so am not sure how they arrived at that figure

[pixie]

I think it's standard practice to send out the figure which would pay debts in full plus all ass. costs. Even after sending a figure to them it will still take ages and ages for any response. They seem to have a very long and drawn out process to even tell you if the figure sent is acceptable and will be put to creditors.
I can only advise emailing your ip and keep chasing.

[David Mond]

I don't think it is standard practice. Sometimes offering between 10% and 15% less than what you still have to pay into your IVA might temp creditors to accept now. Also your IP should be able to suggest to creditors a variation to put this into effect and at a low cost. A lot of my colleagues (but not all) will do this at a fairly cheap rate which comes out of the pot.

[pixie]

I meant standard practice for dfd not all firms! Which just comes from my experience of them.