Settlement Figure Advice

[owenb]

Hi I've been in an IVA now for 3 and a half years. Things have changed this year that have really stretched my income and therefore my ability to meet my IVA payments which have led me to suspend payment temporarily.
I'm with Grant Thornton and in honesty I've not had to have much contact with them until now.
Basically I have a property in negative equity that I was renting out to cover the mortgage payments, unfortunately the tenant left in February and I've been unable to get a new one in and as such I can no longer afford the £377 payment to IVA as I've got to cover my mortgage at £325.

I've paid £15834 into the IVA which was supposed to achieve £22620 of an original debt of £33k.
My mother in law has offered to help pay off my IVA but only has £4000 in savings. Basically I'm wondering if this would be a suitable offer of a full and final settlement, I cannot see myself completing the IVA if things go on as I can't maintain the regular payment. If anyone can offer any advice I would really appreciate it.

Regards

Owen

[Michael Peoples]

It seems reasonable especially if you have moved back into the property. If you are not going to live in the property there is the option of surrendering it and then you could meet the payments although your debt would go up overall. Chat it over with your IP.

[owenb]

Thanks,
I've called Grant Thornton to arrange a discussion with them and that's all booked in now. I'd rather not surrender the property but it's definitely an option I can discuss with them.

I know there's still a lot to consider but I really hope I can come to an agreement without defaulting, I've managed to come so far with this and it's annoying that it could fail because of this.

[Michael Peoples]

Good luck and I am sure you will be able to agree the best way forward for you and even the creditors.

[MelanieGiles]

Have you actually moved back into the buy to let property, owenb?

[owenb]

Hi Melanie, no my buy to let property is currently empty. I'm living with my girlfriend and our two children which was a cheaper option than living in my own place with additional energy and council tax bills to add in.

[owenb]

Hi following the advice given previously I finally made an offer of a full and final settlement in October 2013, it went through in December and am now waiting for completion to go through, the offer of £4000 was accepted, on top of that I was awarded £1600 PPI so that topped up the fund.
I'm really happy to be out of the IVA, I am just unsure as to what to do next, the information hasn't been free flowing from my IVA provider!!

[dusty]

Hi Owen,
I'm considering a full and final settlement at the the end of this year, which will be my 4th year.
How did you go about making the offer? was it through your IP? I ask because my IP seems to think only the full outstanding amount would be accepted?
By end of this year, I would owe slightly more than you did, say £9000 and I'm trying to figure out what kind of offer would be accepted. Any help or advice would be appreciated.

[owenb]

Hi Dusty sorry for the slow response.
I was really struggling with my repayments and as such I called my IP and told them I had the offer from my in laws. I had to do an income/expenditure form and they sorted everythign else from there, it really was quite a painless process. The £4000 was all my in laws could afford to give, I couldn't offer any advice as to what to offer, I think the fact that my situation changed they accepted the lower offer to prevent losing everything and it was the best deal all round.