How much is a reasonable offer pay my IVA in full

[fionaj]

Hello
My mum has offered to take a loan to pay my IVA in full. Total debt 39000. PAying 500gbp a month. Only 2 months in so far. How much is a reasonable offer? My IP is away till 13/04 and I really want to give my mum a rough idea today.
Thanks

[MelanieGiles]

Hi fionaj

It will seem odd to your creditors that you want to offer a full and final settlement so soon into an IVA. I would personally not recommend this until you have paid in for at least a year, but of course that choice is yours and your IPs.

If you are going to make an offer, I would suggest you look at the total amount of outstanding contributions you are yet to make ie £29,000. You may be able to negotiate lower, given that some IP costs will be saved, but I would not push that too far if you want to succeed.

Can I ask why you did not consider this route before entering into an IVA - and did your IP ask you whether family members were in a postion to help?

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[fionaj]

Hello

Thankyou Melanie.

My IP did not mention that I could possible settle with a lump sum without going down the IVA route. I mistakenly thought I needed to be in an IVA before doing this.
I did ask my mum a while ago, but she was not keen to help me, but things have changed and she would rather me pay her the money back

[MelanieGiles]

Fiona

See what your own IP says and post the response. I will be interested to see what they say in this regard, and feel that this option should have been discussed with you prior to entering into the IVA so that at least you know there was an alternative route.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Adam Davies]

Fionaj
Press ahead with your full and final settlement.Your IP will probably be cold towards this but take no notice.Your creditors will be more than happy to accept their money now rather than years ahead.I would offer them a slightly higher dividend than they were originally going to receive,say 2p in the £1 more.Make sure that your IP knows and states that your disposible income will be used to repay your mother.
Your case highlites the need for a thorough fact find and best advice policy for ALL IPs similar to a fact find that a mortgage broker would make.More importantly it needs to be policed thoroughly by the regulatory bodies.
regards


Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

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