What lump sum would have to be paid?

[Aaron]

Hi,

Just wondering what lump sum would have to be paid to close my IVA....I know it would have to be paid by a third party.

Starting Debt of - £24,000
Total to be paid (£280pm) after 5 years - £16,800
Total Paid (after 10 months) - £3,013
1st Year costs of IP - £2935.50 (includes the VAT)
2nd year to 5th year costs of IP - £2350 (includes the VAT)

Just wondering what might be accepted in order to close my IVA. I'm thinking around £13-£14k.

Thanks

Aaron

[MelanieGiles]

Hi Aaron

Assuming a dividend of 48p in the £, I would suggest that £13,000 would do the trick, depending upon your IP's final costs. Is this a possibility for you?

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

[Aaron]

Thanks Melanie,

So if I paid that now then would my IP charge all his costs up front, so the 1yr and 2-5?

Not really an option at the moment, but possibly in about a year, but I just wanted to know where I stand.

Thank you again....go get some sleep!

[MelanieGiles]

Aaron

Your IP could not justify charging all of those fees now - but a proportion would be payable, and he is also likely to charge a fee for work associated with calling a variation meeting. If you are looking at doing this in a year's time, then the figure will reduce as you will have paid over more contributions.

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