Advice on end of iva

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ian796

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Post by ian796 » Wed Mar 10, 2021 2:16 pm
my mum has had a IVA In place for 5 years her agreement was 40 x payments of 125 then 20 x payments of 175 amounting to 8500 pound over the term of 5 years she made her final payment in November 2019 since then nothing has happened the company requested around dec 20 to send over income and expenditure forms and mortgage statement which I have done she has no chance of a re mortgage due to her credit rating and her age .
They have now emailed saying she needs to make a further 12 payments of 175 pounds a month my mum Is also paying 880 on her mortgage still and without help from her sons paying household bills etc would not be able to afford this
does anybody know if the IVA company has a time limit from when my mum made the final payment to request the further 12 payments because it has been longer than 12 months
What I would like to do is offer the IVA final settlement fee since they would get 2100 over the course of 12 monthly payments does anybody have a idea how much they would be likely to accept and how quickly I should get a answer from them please
any answers would be greatly apricated
hope all this makes sense

Foggy

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Post by Foggy » Wed Mar 10, 2021 2:24 pm
There is no time limit and this has to be attended to before the IVA can conclude. This was part and parcel of the agreement your mum entered into and adhering to the agreement is her responsibility, not that of the IP.

As for a lump sum --- at this stage it is not really practical, as these take a couple of months to organise (being a change to the contract which would need to be put to creditors) and also adds 300 - 500 to the fees. So there is little scope to reduce the 12 x 175 (2,100) they are expecting to get.

I am sorry the answer I have given couldn't be more helpful.
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ian796

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Post by ian796 » Wed Mar 10, 2021 2:27 pm
also do the iva have a time limit from the final payment date to when they can request a further 12 payments because it has been longer than 12 months my mums IVA started in October 2014 she is 65 still paying a mortgage and I really don't want it dragging over her another 12 months hence reason id like to offer settlement figure myself

thanks again any advice greatly appreciated
ian

ian796

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Post by ian796 » Wed Mar 10, 2021 2:29 pm
Wed Mar 10, 2021 2:24 pmFoggy wrote:
There is no time limit and this has to be attended to before the IVA can conclude. This was part and parcel of the agreement your mum entered into and adhering to the agreement is her responsibility, not that of the IP.

As for a lump sum --- at this stage it is not really practical, as these take a couple of months to organise (being a change to the contract which would need to be put to creditors) and also adds 300 - 500 to the fees. So there is little scope to reduce the 12 x 175 (2,100) they are expecting to get.

I am sorry the answer I have given couldn't be more helpful.


that's ok I wanted a honest answer its fine thank you so not much I can do then ?

luluj

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Post by luluj » Thu Mar 11, 2021 4:10 am
As foggy explains it would have been explained at the outset regarding the equity clause and it additional 12 months. Its normally dealt with around month 54.

The additional payment of £2100 could be offered as a one off payment to allow closure action to commence but its unlikely they would agree to less at this stage.
Completion takes up to 6 months in some situations, and your mum's credit files will continue to show the iva until it is concluded and certificate issued / and the 6th anniversary of its start date has been reached.
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