www.iva.co.uk

Hi,
I have been in a IVA for 2 years currently paying £217 a month so over the term of the iva I would be paying 13k back. I originally owed 21k my girlfriend has offered to give me the money and pay her back over time. roughly what would be the figure I would have to pay to settle the iva early? Thanks Chris

Hi Chris and welcome to the forum

If you want to settle your IVA early, it is usually best to seek a settlement figure from your own IP based upon achieving the original dividend pledged. I would have thought something in the region of £5-£6k would be acceptable.

Thanks for the reply melanie. I have contacted them today and they have told me I need to send a letter in stating a request for a 100p statement or something is this the usual thing you have to do. Thanks Chris

Don't know what they mean to be frank - I call them settlement figures.

I'm just going to write a letter to them asking for early settlement figures. The 5-6k you mentioned would that be the total I would have to pay or would the IP be charging me a sum as well?

You really need to discuss settlement figures directly with your IP, Chris.

Hi again melanie, they have sent me this 100p statement its saying "lump sum required to give creditors 100p in the pound is approximately £25,243 as you will appreciate creditors are potentially entitled to recieve 100p in the pound against the debt due therefore your offer should be as close to that amount as possible"
BREAKDOWN FOR 100P FIGURE
total funds paid to date are £3.255
FEES PAID
nominees fee £2.500
supervisors fee £270.33
office holder expenses £0.00
vat £484

actual claims to date £13,136.46
provision for further claims £7.977.72
outstanding feed and disbursements £1,426.38
meeting fee £500
early settlement fee £1,800.00
vat £402

This is what the letter says they saying i need to pay back near to 25k! what do you reckon i should offer them now I have had this information provided.

Why do they say that you have to pay 100p in the £ - and why are they charging you a settlement fee of £1,800? That is astronomical and unecessary given the amount of work they have to do to close a case.

I thought the settlement fee was a lot is the anything I can do about them charging me that? and what is this provision for further claims will I have to include this in my settlement figure? have rang them up I dont have to pay 100p in every £ they just said thats what they do when people ask for settlement figures they said its up to me what I offer. over the 5 years of my iva it would work out that im paying 13k back I have already paid over 3k so what do think I should offer them. Thanks for your advice

That is a ridiculous way of calculating settlement figures, in that it has no bearing on the actual circumstances of your case whatsoever! Can I ask which firm you are using?

The provision for future claims will be from creditors who have not yet submitted a proof of debt. You ought to assume that they will eventually claim as most creditors do.

I would have thought than an offer of £6,000 ought to be a good starting point - and do remember that it is your right to put whatever offer you like to creditors, and IP is obliged to do this for you.

its debt free direct which i thought was a good firm citizens advice recommended them to me! so what happens if i pay them off and the iva is finished what happens to the provision for future claims?

The claims will be received and they will receive a dividend from your suggested settlement, leaving you debt free.

so is this common with debt free direct charging a lot for fees? i will let you know how I go on when my offer has been put in thanks

Hi
Offer 6k
What a ridiculous way that DFD have advised you to settle.If you had a windfall then yes,100p in the £1 would be needed,but you are offering an early settlement to your IVA by way of a third party loaning you the money.
Write to your IP with the offer and let us know how you get on
Regards

yes im going to offer 6k and thats including there fee can only say no, thanks.