3 Years in, couple of questions?

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charlierothwell

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Post by charlierothwell » Sat Jan 16, 2021 4:33 am
I am 3 years into my IVA and have just had my payments increased from £110 a month to £260 a month.

My original debt was around £11500 with my original repayment amount at £6600 (£110 x 60)

I am planning on moving out of my parents house in a couple of months which will result in an increase in rent/other bills, will my payments be reduced to reflect this?

If I was to make a full and final offer would I be looking at my original (£110 x payments remaining +/- fees) or would it be the new (£260 x payments remaining +/- fees)?

Would it be a better idea to wait until I've moved out and my payments are reduced (hopefully) and then make a full & final offer?

Any advice welcome.

kallis3

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Post by kallis3 » Sat Jan 16, 2021 8:40 am
I would wait incase your move is delayed but you need to keep your IP in the loop as your payments may well reduce once that happens. Where would the money be coming from for a full and final?
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charlierothwell

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Post by charlierothwell » Sat Jan 16, 2021 9:48 am
The money would be coming from a family member, am I working it out right that the amount needed to pay would just be the rest of my monthly payments in one lump? And that it goes off what my current monthly payments are and not what they where originally?

Foggy

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Post by Foggy » Sat Jan 16, 2021 10:39 am
The F&F offer should be based on the remaining payments, calculated on the current amount, so, at the moment, £260.

Your payments might be reduced again to reflect the new rent payments etc., if creditors accept the new expenses ( They are not bound to). If so the offer would then be based on the new, reduced, monthly amount.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
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charlierothwell

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Post by charlierothwell » Sat Jan 16, 2021 12:24 pm
Sat Jan 16, 2021 10:39 amFoggy wrote:
The F&F offer should be based on the remaining payments, calculated on the current amount, so, at the moment, £260.

Your payments might be reduced again to reflect the new rent payments etc., if creditors accept the new expenses ( They are not bound to). If so the offer would then be based on the new, reduced, monthly amount.
Do you think it's likely for them to accept the reduced payments if it isn't lower than the original amount set out at the beginning of the IVA. Thanks for the help guys.

Foggy

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Post by Foggy » Sat Jan 16, 2021 1:52 pm
It is very difficult to predict as various lenders have differing views. I have seen low offers accepted, but also high ones ( one, at least, actually in excess of the amount outstanding) refused. Very often debts have been sold on and, although the new creditor acquired it for pennies and, although you would think (hope?) they would be happy to cut and run with a profit, some of these debt acquisition firms are somewhat money oriented and will go for the greater amount.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

charlierothwell

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Post by charlierothwell » Sat Jan 16, 2021 2:03 pm
Sat Jan 16, 2021 1:52 pmFoggy wrote:
It is very difficult to predict as various lenders have differing views. I have seen low offers accepted, but also high ones ( one, at least, actually in excess of the amount outstanding) refused. Very often debts have been sold on and, although the new creditor acquired it for pennies and, although you would think (hope?) they would be happy to cut and run with a profit, some of these debt acquisition firms are somewhat money oriented and will go for the greater amount.
I was wondering if it would be worth offering them the amount that would take it up to the original £6600 and telling them there's a chance that if I was to carry on paying monthly that this amount may possibly reduce in the future, maybe get them thinking that they could be losing out on money? But then are they likely to make me bankrupt :roll:

Foggy

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Post by Foggy » Sat Jan 16, 2021 2:31 pm
Often they will get very little, if anything, if they make you bankrupt, so this is not always the inviting route it might at first appear. Creditors aren't always ogres. When I did my F&F it was an 'all or nothing' exercise -- I was asking for closure on payments to date due to unaffordability going forward, having suddenly become a single parent to a 6 year old. I couldn't afford any payments going forward. Happily they agreed to call it quits and allowed me to complete there and then. At that stage they had been paid 31pence in the pound, which, after fees, is about what your creditors are looking at with the £6k repayment ( I know you are actually paying in about 50%, but the creditors don't actually see a good chunk of that after fees, etc.) .
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

charlierothwell

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Post by charlierothwell » Sat Jan 16, 2021 3:05 pm
Sat Jan 16, 2021 2:31 pmFoggy wrote:
Often they will get very little, if anything, if they make you bankrupt, so this is not always the inviting route it might at first appear. Creditors aren't always ogres. When I did my F&F it was an 'all or nothing' exercise -- I was asking for closure on payments to date due to unaffordability going forward, having suddenly become a single parent to a 6 year old. I couldn't afford any payments going forward. Happily they agreed to call it quits and allowed me to complete there and then. At that stage they had been paid 31pence in the pound, which, after fees, is about what your creditors are looking at with the £6k repayment ( I know you are actually paying in about 50%, but the creditors don't actually see a good chunk of that after fees, etc.) .
I think I might draft a letter up and send it over see how it goes, think mines more around 27 pence in the pound. I'm sure they aren't ogres but I can just see them rubbing there hands together at the sight of my payments doubling and them thinking that the issue of me moving out is some sort of bluff.
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