we would like some advise if possible

[roz]

Hi we would like some advise if poss. I have been in an iva for 3 1/2 years and am currently thinking about a f+f settlement.
I need to clarify a certain point, my iva is contracted to pay a minimum of 33p in the £. with estimated contributions of £10700 and £21706 equity in yr 4. Is the 33p worked out using the two figures above minus the estimated ip fees or is the ip fees extra?

The reason I am asking is that after entering the iva my figures I put forward were £72,716 but one creditor added all their payment protection that should have been due and it bumped the figures up to £93639.00. I have been following payments as per my ip and have not missed anything,but looking at these figures now I am not sure that the 33p in the £ will be met. Would they have worked out the payments going off my figures that I gave them or would they have waited to see what the creditors provided. Looking at my first report it says that unsecured creditors claims of £72716 as per debtors statement of affairs but they had actually received claims totalling £93639.

Am I right in thinking I would need to raise an extra £7000 on top of these figures to achieve the minimum of 33p in the £. Am I also right in thinking my ip could have got the figures wrong when working my payments out, should they have been adjusted? what would happen if the extra money could not be raised due to it being their fault.

[MelanieGiles]

The 33p will be calucaluated after IP fees have been taken into account. Your maths is correct, but why has your IP not asked for the PPI policy to be cancelled and a return of the outstanding premium. This should at least reduce some of the additional claim.

I don't think you need to blame your IP for this - after all you signed the proposal as well. If you are looking to offer a full and final settlement, try and offer the best you can to creditors and take your IP's advice as to the amount you ought to offer. Where is the money coming from to settle?

[roz]

Thanks for your reply Melanie. We are not trying to blame our ip but surely after the increased claims by the creditor came in they would have realised the payments would not acheive the 33p in the £. We have only just realised this upon looking into a f+f settlement. From your reply therefore we presume we are liable for 33p in the pound on the upper figure after ip fees.

We were looking into a remortgage but if the above stands on the higher figure it is probably not achievable at the minute.

The 33p will be calucaluated after IP fees have been taken into account. Your maths is correct, but why has your IP not asked for the PPI policy to be cancelled and a return of the outstanding premium. This should at least reduce some of the additional claim.

I don't think you need to blame your IP for this - after all you signed the proposal as well. If you are looking to offer a full and final settlement, try and offer the best you can to creditors and take your IP's advice as to the amount you ought to offer. Where is the money coming from to settle?

[MelanieGiles]

I agree that this shoudl have been highlighted to you as soon as the higher claim was received, but I guess your IP assumed that your eventual equity release would probably cover the difference. You really need to take specific advice from them, as they have detailed knowledge of your case and will be in a better position to give specific advice.