wondered if you could give me some advice

[ian1968]

Hi there i wondered if you could give me some advice. I have entered an IVA in Jan 06 for 5 years. I pay £324 per month of which i have now made 17 payments. This payment has stayed the same. I am wondering what the process is regarding early repayment. How much money should i offer to settle (the least amount)...i have a new partner who states that she will gift it to me. Do i need to go through a specialist company or not?
many thanks for your answer Ian

ian

[aguise]

Hi Ian
I will have a go at answering and others will correct me if wrong. I think the usual amount would be in the region of what you would pay into the iva over the five years or maybe a bit less. you would do this through your Ip by way of a variation meeting where you would offer a full and final settlement. If you do make sure that you make it clear that you would have to use your disposable income for the repayment to your girlfriend, a loan rather than a gift, or the creditors may look on it as a windfall.
Hope that helps.

Ang

[Adam Davies]

Hi
A guide would be your original payments x 60 plus IP fees of 5k,less payments made.This is assuming that you do not have an equity clause.Some IVAs do not allow a variation within the first two years.
Hope this helps

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[Barrington]

Hi Ian
Make sure that your partner makes it clear that she will only make the money available if the variation is approved. That will avoid any risk of it being treated as a windfall. Otherwise you have all the answers above.


Phil Wood (IP since 1983)
www.barringtons-online.com

[ian1968]

Thanks for the advice. Does anyone know if i cleared the iva settlement via my partner - could/would we be able to get a mortgage together or not?
thanks ian

ian

[ian1968]

the other thing to mention is i have never had an annual check - been in the IVA for 17 months now.....should i be worried or not? direct debit is still coming out of my bank at £324 per month.
ian

ian

[MelanieGiles]

Firstly there ought to be no problem in you and your partner getting a mortgage together - I assume that you mean once the IVA has been paid in full.

Secondly it is odd that you have undergone no annual review of your circumstances, have you received a copy of your Supervisor's first report to creditors?

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

[aguise]

Hi Ian
Have they not asked for anything like wage slips etc since the iva began.

Ang

[ian1968]

no i have had nothing from debtmatters. i would really like to know if i can contact my ip to offer a settlement - what is the lowest they would accept in F&F settlement. 17 months already paid at 324 per month.
thanks ian
this is so nice of a forum - you do not feel alone or embarrassed to ask questions - thank you

ian

[ian1968]

no first report to creditors received thanks ian

ian

[kandh]

As I understand it, you are paying £324 per month for 60 months? This would total £19440 over the five years. You have already paid 17 months totalling £5508. This would leave 43 months left to pay which would be £13932.

From this, you can take off 3 years IP fees (for their work that would have been done in years 3, 4 and 5). But you will need to add on fees for the variation meeting (between £500 and £1000 roughly - dependant on your own IP). Although you will need to clarify whether you able to offer a FFS within the first 2 years. Some IVA policies dont allow this until you are in your 3rd year at the earliest.

This would mean your creditors would get their dividend as set out in your proposal (although it is always best to try and offer 2p more in the £ as a little added incentive to approve, as Andy would say [;)]

HTH but I am sure someone more experienced than me will be along soon.

[MelanieGiles]

Hi again

You do need to query with your IP why no report has been prepared. They have a statutory duty to provide this to you and your creditors within two months of the anniversary of the IVA.

I would have thought that a settlement in the region of £12,000 ought to be acceptable, but do check with your own IP who has more detailed knowledge of your case.

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

[ian1968]

Thank you all - i will dig out my iva documents tomorrow and look at the clauses.
will let you know. thanks so much

ian

[ian1968]

hi all i have spoken to my supervisor for the first time and asked about early settlement - i must admit they were nice on the phone...they stated that they could not tell me a figure to offer. However, after trying to prize it out of them they did say that if i offered the full remaining outstanding balance which will be £13932 they should have a good chance of getting my creditors to accept it. However, for the last couple of months my bank account has been overdrawn slightly by the time my next wages went in (with permission)....since finding this site i am now more aware of what i should and should not be doing.........reading my IVA it states that i should not go overdrawn...ouch - how do i get out of this one......they require my last 3 months bank statements......do i try not to go overdrawn for 3 months and then try to offer a settlement??? help...ian

ian

[MelanieGiles]

Ian

This is a fairly non-issue, so I would not worry to much about it, but do try to stay in the black from now on.

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