Want to Settle IVA Early

[mazalamar]

Hi Melanie,

I'm not paying 100 pence in the pound - that's the problem. I want to get away with paying as little as possible and getting out of it. I've had the following breakdown from them:

Total Funds To Date: £10088
Bank Interest: £37.59
Fees Paid
- Nominees Fees: £2500
- Supervisors Fees: £1950
- Office Holders Expenses: £317.96
- VAT: £812.43

This leaves a balance of: £4545.20

Actual Claims to date: £66466.46
Provision for future claims: £30183.68
Meeting Fee: £500.00
Early Settlement Fee: £1500.00
VAT: £350

Full and Final Amount: £94454.94


Can you tell me what you think would be fair based on these figures and your method of calculation?

Thanks!

Mario

[mazalamar]

I was actually going to tell them that the opportunity has come up to pay it because a friend is lending me the money. I'm keen to settle my debts and finally be debt free. And this allows me to resign from my job and start looking for another one or maybe even go traveling. Do you think they would go for that?

[MelanieGiles]

I don't see the point of that calculation if you are not going to be paying 100p in the £, but please do not approach your IP on the basis of wanting to get away with as little as possible, as this is not going to be treated kindly.

How much money do you actually have available? And you should have asked your IP to put forward an offer based upon the amount of dividend you originally pledged not a full repayment of your debts.

[mazalamar]

Hi Melanie,

So far, I've asked the IP for the 100 pence figure. I've told them I could be in a position to propose an offer of settlement of the IVA. The above info is what they've come back with.

My friend has basically said he'll lend me any amount up to 20k. BUT he wants me to see how little I can get away with in an offer.

I would never say that to the IP of course. I just want to know based on the above figures what sort of offer I should make.

Also, is it called a Full and Final even when I'm not offering the 100 pence figure?

[MelanieGiles]

As I said, your starting point ought to be achieving the original dividend pledged.

[mazalamar]

Hi Melanie,

That's absolutely what I want to achieve - it's 23p in the pound. The trouble is, the IP is going to deduct fees and whatever is left will go to creditors if they agree.

The IP seems to be asking me to pay an early repayment fee, but looking at my documentation, there isn't any mention of this in my contract.

How are they able to levy this?

Ideally, I want to make an offer that will get 23p to the creditors but make the fees payable to the IP fair for the work they've done.

Thanks

Mario

[MelanieGiles]

I would say that the £20,000 is pretty spot on to achieve 23p in the £, assuming that creditor allow your IP to take those future fees which is doubtful.

[mazalamar]

Hello All,

Well, a quick update is called for I think. My Creditors met last Friday (22nd) to review my offer of a full and final settlement of my IVA.

I offered them £17,500.00. The fantastic news is - they accepted the offer - which I'm overjoyed about!!

A real weight has been lifted off me - and what's even better, I managed to save enough money during my IVA to buy a new bed today - I paid cash - what a nice feeling I got when I was offered interest free credit for 4 years and was able to say thanks but no thanks I'm paying in cash and want a discount!

I'll keep you posted of what happens next. There's a certificate to follow and then the clean up of my credit files begins.

Thanks to all who provided support in the VERY long post above - I really appreciated all of your comments/support/suggestions - especially Melanie - you've been brilliant - thank you!

Speak soon,

Mario

[kallis3]

Fantastic news Mario - so pleased for you.

What a fantastic feeling to be able to pay cash for your bed rather than relying on the plastic.

Good luck for the future.

[Viki.W]

Congratulations, that's fantastic news. Good luck for the future and enjoy that bed. X

[MelanieGiles]

Great news to end the week on and I'm glad that you found the forum so helpful. You can now look to the future without the weight of unaffordable debt, and that must be a great feeling.