Reasonable offer to end an IVA

[susan]

Can anyone advise me on what would be a reasonable offer to end my IVA. I have debt of 15K and have had my IVA for two years now. My circumstances have changed in that I have been diagnosed with a serious medical condition which is stable at the moment but could change; when you have something like that happen you really look at your life and to be honest feel that life is such a continuous struggle every month, i never have any money left to enjoy things with my kids. my sister has offered to lend me a maximum of 2k. would this be a reaonable amound to offer to my criditors? I just want to be able to live my life without the stuggle and also to be able to support my daughter who wants to go to university. Any ones comments will be really appriciated.
thanks
susan

[catullus]

Susan
I mentioned on another post that in my opinion , I'm afraid that an offer of that nature has very little chance of success. How many creditors have you got?

[susan]

four creditors - i have spoke with the supervisor and they say to get a letter from my consultant and get the evidence together to put to them?

[catullus]

Well, if your supervisor is supportive and your offer of a final settlement won't be wiped out by fees I suppose the creditors might look sympathetically on your offer with medical evidence being provided to the Supervisor.
You also didn't mention what you have paid to date and what dividend in the £ the extra £2k would result in. This would be important information that the creditors would look to.

It must be a very stressful time for you.

[susan]

hi-paid to date around £4800 and i believe the creditors dividend is 25p in the pound. what fees are there likely to be as my supervisor never mentioned those? i even wondered whether it would be worth contacting the creditors direct - im really not sure what i should do. It is a very stressful time for me but my motto is keep smiling, it cant get any worse!!
Susan

[Adam Davies]

Hi Susan
Get the info that the IP wants and stick with them rather than contact your creditors direct.You may be surprised and creditors agree to your f+f given the circumstances.
Regards

Andy Davie
IVA.co.uk Spokesperson

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

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

[catullus]

Susan

Two years in to an IVA conservatively I think that the ip will have charged a nominee fee of £1500 plus two years supervisors fees of £750. Add VAT on to that lot and fees come out at £3500 and there will have been other expenses. He might also charge you to do the variation which might be £500 plus VAT so adding all that up it's easy to assume that most of the £4800 that you have already paid has been or will be taken in fees.

The £2000 that your friend will put in will produce a dividend to creditors of about 13p (2000/15000) which normally would not be a variation that the creditors would accept, which was why I first indicated that I didn't think that the offer would be acceptable, without realising from the post on the other thread that there were special circumstances. Generally creditors would be looking fora minimum of 25p.

But there are special circumstances and it seems as though your IP is sympathetic so you've not much to lose by exploring this with the IP and I would try to persuade the IP that in view of the circumstances he should cap his fees. That might be another inducement for your creditors to accept.

Hope this helps.

[susan]

Thanks to you both. Your advice has helped me to see things a bit more clearly and to have a bit of hope that the creditors MAY look at my situation sympathetically. Im glad iv found this site and its nice to know that there are other people in the same situation as me with an IVA and its somewhere i can come to when things are good and bad. I am getting all the information together and will send it to my IP middle of August - will let you know the outcome. Thanks again. Susan

[susan]

My sister has very kindly offered to lend me the money, however when I told her that the IP will conduct a check on her (appparently due to money laundering), she was not very happy. Is it true that they do this check on people who offer to lend money?

[Storm]

It is only a check to confirm she is who she says she is. All financial transactions over £1k are subject to validation for money laundering / proceeds of crime legislation.

Its a minor thing - they won't ask where she got it unless it turns up as cash in a brown envelope.

[susan]

Hi,
Part of gettting all the information ready to send to my IP also includes another income and expenditure. on doing this this evening I realise that my outgoings are more now due to moving recently and having a higher rent to pay. I have minimised everything i possibly can but I am still short of £42 of my monthly payment (surplus income) (hope this makes sense). If I put everything on there i will not have any surplus money. I am not sure what to put as realisticlly my outgoings are more now than I get in! Can anyone advise me on the following two points a) if the creditors do not agree to my proposal for a F&F will my monthly payments be £42 less than what I am paying now? and b) can they force me to go bankrupt due to having less surplus income than when I took out the iva(i have not missed any payments). thanks for your help.
susan

[Adam Davies]

Hi
If you can honestly show that there is no disposible income,and back this up if challenged,then it can only strenghen your case for a F+F.
Regards


Andy Davie
IVA.co.uk Spokesperson

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

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

[susan]

Hi Andy - thanks for your quick reply. I am so worried that if I put down on the form how it really is that they will force br which is something that is not an option for me. I can certainly back my outgoings up if challenged (my rent after moving increased by £280 for example). susan

[Adam Davies]

Hi again
But what would they get in bankruptcy ?
They will not bankrupt you because of your disposible income.
Just show things as they truly are and keep a good line of communication with your IP.
Good luck

Andy Davie
IVA.co.uk Spokesperson

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

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