www.iva.co.uk

Firstly, I'd like to ask if it would be OK for me to ask my queries here as my husband and I are not in an IVA. We've been doing a self-managed DMP since 2008 and we were going to try and start an IVA next year, however unfortunately my granddad passed away recently and my parents have said they would like to assist in settling our debts by using some of their inheritance money so I have a few questions about what to do and how best to start the ball rolling.....?

Hi Stejay I am sorry to hear about your granddad passing away

If you have access to a lump sum a full and final IVA could be an option for you as you get to settle your debts and the creditors get their money quickly, everyone's a winner

Speak to a few IPs about the best way for you to proceed, we regularly get full and final IVAs accepted

Hi, thanks. I've never heard of a F&F IVA before - how does it differ from doing one myself?

I'm quite happy dealing with it myself, but just wanted to make sure I got the wording right - I used the nationaldebtline template and amended it to come from me but stating the money is from a third party and will be paid by the third party by way of a banker's cheque.

I've written a little about how we got into difficulty and pointed out that if we carry on as we are it would be over 10 years before the accounts would be settled.

I've included the ex-gratia and without prejudice wording and I'll enclose a summary of the amounts being offered to all creditors, including what we currently owe. ETA should I do this, as on some forums people advise against it as they say the creditors won't care who else you owe to, just that they would want it all?

Should I also enclose an up-to-date financial statement, even though they all had one in June/July?

Also, I've read that some creditors could make it awkward by not accepting the offer and then knowing we have access to some money may try to get us to start making full monthly payments again and other things...... is this true?

Also, all creditors agreed to freeze interest when we first started DMP - so could they agree to settle and then try to get us for the interest later?

Many thanks if anyone can assist with these queries or have any other advice.

P.S. I'm offering 30%

Hi Stejay,

When you propose a full and final IVA, you do so using one lump sum payment rather then paying over 5 years and you need 75% of creditors agreeing to the offer. They usually last a few months to allow the creditor claims to come in, the money to be distributed to them and other case closure matters to be concluded.

If you are considering trying to settle the accounts yourself you can use the template letter you mention and include an up to date income and expenditure. It may be that not all creditors agree or some come back and start to negotiate with you to increase their return.

If you send a letter which makes it clear the offer is in final settlement and they confirm in writing to you I don't see how they have grounds to continue to ask for payment.

The risk with offering a final settlement is that some creditors may agree but other may not and you sill have some debts in your DMP but with a full and final IVA as long as 75% agree the other creditors will be bound by the IVA.

You cannot do a self-managed IVA, stejay, you have to appoint an insolvency practitioner to act on your behalf. Why not seek some free advice from a practitioner as to the options available to you - to enable you to weigh up the advantages, disadvantages and implications of each option.