What should I settle at ?

[jaihind1975]

Hi,

Any help would be appreciated.

This is a lot of debt I know, please bear with me -
Total debt was £143,319
IVA costs £9258 comprising of -
Nominee's fee - - (2,500)
Supervisor's fee - - (5,000)
Disbursements - - (219)
Input VAT - - (1,351)
Filing fee - - (30)
Bordereau - - (158)
Total Estimated Costs (9,258)

We agreed 46p/£ so total left for distribution was £65,742.

I currently pay £1250 p/m and have paid since nov 06. I have paid off £27,500 (I have missed 2 payments (£2500)) and was wondering how much I could settle at today. Total debt remaining of IVA is £47,500. If I exclude all remaining fees, do you think they could settle at £35,000 ??? What is a realistic sum considering the current climate and the value of money today is higher than tomorrow and the saving of all the remaining fees.

Please help....

[MelanieGiles]

There is no real answer to this - or only one that your IP and ultimately the creditors can give you. Personally I feel that your offer is too low, and you do not explain why you need to settle early or where the money will be sourced from. However if you do have good reasons for early settlement this may well be viewed as a good offer.

Best to chat through with your own IP as they do have detailed knowledge of your case.

[jaihind1975]

Thanks for your post.
Basically I have not been working for a year and still me and my wife (joint claim) have been making our payments. They do not know that I have not been working as I wanted to continue payments as best we could.
Funds would come from parents.

[jaihind1975]

I just want to end our debt so we can move forwards in our lives. Have been in debt for so long. Our household income is around £1700 and £1250 goes on this IVA.

[MelanieGiles]

How have you been managing your payments whilst not earning anything over the last year?

[jaihind1975]

My wife has been paying it and generally a struggle with help from parents. We live at home with my parents so some costs can be kept down

[MelanieGiles]

Wasn't your wife's income taken into account when the IVA was proposed?

[jaihind1975]

Yes it was, we are both in the IVA together but have basically stopped paying rent to my folks and housekeeping as a result they are simply suggesting we try and start afresh if they offer to pay a lump sum to the iva

[jaihind1975]

it has been a struggle hence the question about a lump sum clearing everything in one go and if £35k would be enough in your opinion ?

[MelanieGiles]

I think that you now have to ask these questions of your IP to see what they are prepared to recommend to creditors. They have detailed knowledge of your case, and will understand the effect that your current living arrangements are having pm you and the fact that you are being subsidised by your parents. If your disposable income has dipped significantly, and you would need to vary the arrangement to accomodate lower payments, then perhaps the £35l lump sum begins to look attractive.

[jaihind1975]

Our IP did not even do our statement last year, takes 4 days to respond to a question and also did not really give any suggestions when I stopped working last year.
My have has been promoted and this along with money from signing on brings an income of around 1800, of which £550 is free per month for bills and general living (if thats wht you call it).
I would prefer not to go through the bankruptcy route because believe it or not I have been an investment banker and qualified IFA !!!! I know how freaky this sounds !!
I would like to ensure that I could become registered with the IFa in the future if I chose to be and have my own company as well and hence bankruptcy is not an option.

With the figures I gave in my first post. Fees total £9,258 - would this be split over 6 years of the IVA ?

Would it be a good idea to suggest a final amount of £35,000 then ?

[jaihind1975]

and we have also had 3 different IP's in 2 years so in reality they do not even know the case

[MelanieGiles]

If you put the offer forward they can only say yes or no - and it does not cost you anything to try, so I would ring them first thing tomorrow morning. Which firm are you with as a matter of interest?

[jaihind1975]

It is not one of the biggest companies. I would rather not say the name on this post but could email it to you.
Just this feeling that everyone is always watching every move we make and every word we say/write.

[MelanieGiles]

No need - I am just being professionally curious! Good luck with the call.