Early IVA Settlement

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patricia03

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Post by patricia03 » Mon Jun 28, 2010 10:18 pm
I need some advice from you guys.

My IVA started in November 09 and will run for 6 years. I pay £164 per month but for the last 30 months I will have to pay £465.
I am now in the process of getting divorced and with Children to provide maintenance for as well as finding a new place to live I feel I will be unable to maintain the IVA payments each month.

A family member has kindly offered to help me settle the IVA early by making a one off full and final payment. But what I need to know is what would constitute a reasonable offer in order to have a good chance of it being accepted.

Under the terms of the IVA I would still owe around £19K as of today but the likelihood is that the payment value I can offer would be around £6K. Is this too little?

If so what should I have to be aiming for?

Any thoughts anyone?
 
 

MelanieGiles

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Post by MelanieGiles » Mon Jun 28, 2010 10:58 pm
Hi Patricia and welcome to the forum

I don't think that offer is high enough Patricia but speak to your IP directly to see what they suggest. At the end of the day if this is the best you can do, and the alternative is bankruptcy where nothing may get returned, you might be lucky on the day.

Such a shame that your IVA has failed so soon after it was accepted - but I am sure you did not forsee your current difficulties back in November 2009.

The best offers of settlement are always those based on the amounts yet to pay into the IVA.
Regards, Melanie Giles, Insolvency Practitioner
 
 

patricia03

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Post by patricia03 » Mon Jun 28, 2010 11:08 pm
MelanieGiles wrote:

Hi Patricia and welcome to the forum

I don't think that offer is high enough Patricia but speak to your IP directly to see what they suggest. At the end of the day if this is the best you can do, and the alternative is bankruptcy where nothing may get returned, you might be lucky on the day.

Such a shame that your IVA has failed so soon after it was accepted - but I am sure you did not forsee your current difficulties back in November 2009.

The best offers of settlement are always those based on the amounts yet to pay into the IVA.
Tks Melanie

What would suggest I should offer if I still owe £19K
 
 

MelanieGiles

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Post by MelanieGiles » Mon Jun 28, 2010 11:09 pm
At the end of the day Patricia how much can your family member afford?
Regards, Melanie Giles, Insolvency Practitioner
 
 

patricia03

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Post by patricia03 » Mon Jun 28, 2010 11:12 pm
MelanieGiles wrote:

At the end of the day Patricia how much can your family member afford?
At the moment £6K but could go to £10K at a push.
 
 

Shining

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Post by Shining » Tue Jun 29, 2010 3:13 am
Hi as ever excellent professional advice from Melanie and all I can suggest is that the nearer the original dividend for a full and final settlement the better.

I hope things work out for you x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
 
 

MelanieGiles

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Post by MelanieGiles » Wed Jun 30, 2010 12:46 am
I would put forward the £10k offer to your IP and ask them to consult creditors. Given your circumstances, this would appear to be a fair offer.
Regards, Melanie Giles, Insolvency Practitioner
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