Early settlement

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nicky948
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by nicky948 » Mon Feb 04, 2019 5:08 pm
Hi, I've been in my IVA coming up 3 years in may 2019 and my dad has kindly offered to pay the final figure off for me ( it's the early settlement figure).

The first question is, once I have my completed certificate is there any further charges they can ask for once it's been completed like their fees etc over the next 3 years? In other words, are they or can they then request more money for their own fees later down the line.

The other question is, I have PPI currently going through which I have started myself (as they haven't even started it yet it's been nearly 3 years) and I believe it will be a good sum of money refunded but I read in my IVA they will take 40% of this amount as payment for themselves and the remaining towards my IVA, I'm on a standard IVA. Is this correct? As it would make sense to all go towards my IVA instead. Seems so wrong and it seems to benefit themselves more than it does me?
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Foggy
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by Foggy » Mon Feb 04, 2019 5:19 pm
They cannot claim anything other than outstanding PPI, or anything previously undisclosed by you, after completion. PPI : The 40% you have read about relates to claims company fees ... no claims company = no fees. All that your IP would be entitled to would be the fees agreed for his supervisory role (typically 15% of monies paid to creditors).
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nicky948
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by nicky948 » Mon Feb 04, 2019 6:18 pm
Foggy wrote:
They cannot claim anything other than outstanding PPI, or anything previously undisclosed by you, after completion. PPI : The 40% you have read about relates to claims company fees ... no claims company = no fees. All that your IP would be entitled to would be the fees agreed for his supervisory role (typically 15% of monies paid to creditors).


Thank you for your quick response. Either way whatever the amount is will be gone into the remaining debt even though they have given me an early settlement figure which will be paid off soon.

So another question, the figure that my IVA company has given me for an early settlement figure, will there now be a delay with my early completion certificate (if accepted) due to possible ppi payout direct to the IVA company ?
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nicky948
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by nicky948 » Mon Feb 04, 2019 6:24 pm
And something else sorry.... As the IVA company have given me an early settlement figure which will be paid very soon, plus the pending ppi refund that is highly possible could this then delay my completion certificate? If it can, does this mean they can still request my bank statements and do I still need to keep paying my monthly payments to my iva until a completion certificate is received? Or will this all stop and I just have to wait?
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Foggy
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by Foggy » Mon Feb 04, 2019 6:48 pm
First of all --- "Settlement" is usually taken as being the amount required to pay the balance of the full original debt, plus fees and possible statutory interest. Is this the figure they gave you ? If so then any PPI will be yours as everything will have been paid off.

Otherwise --- if what you are paying is a "full and final offer" ( based on agreed payments outstanding) then they will probably await the PPI outcomes, as you are doing this yourself and they have no control, before issuing the completion certificates.

In either case, after you have made the agreed payment, the normal completion procedures will still be carried out and can take up to 6 months, but during this time you will not be required to make any payments.
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nicky948
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by nicky948 » Mon Feb 04, 2019 6:57 pm
Foggy wrote:
First of all --- "Settlement" is usually taken as being the amount required to pay the balance of the full original debt, plus fees and possible statutory interest. Is this the figure they gave you ? If so then any PPI will be yours as everything will have been paid off.

Otherwise --- if what you are paying is a "full and final offer" ( based on agreed payments outstanding) then they will probably await the PPI outcomes, as you are doing this yourself and they have no control, before issuing the completion certificates.

In either case, after you have made the agreed payment, the normal completion procedures will still be carried out and can take up to 6 months, but during this time you will not be required to make any payments.



Thank you once again, just wish they would explain all of this.

It will be the full and final offer to settle early, so what are the normal completion procedures? Never been in an IVA before.

Do they and can they still request bank statements etc in this 6 months waiting time?

Thanks :D
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Foggy
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by Foggy » Mon Feb 04, 2019 8:02 pm
There will be a final review, either at the point of the payment or the next anniversary point, whichever arrives first, mainly concentrating on income, rather than expenditure. Technically, until they issue that certificate you are still in the IVA and bound by it, although not making regular payments and, if an anniversary passes they are supposed to conduct a review --- not sure that they all do though. In my case a review fell between the last payment and the certificate issue and my IP simply wrote to all saying "There is no point in conducting a review because it would be the same as the last review, therefore I propose not to conduct one". IP's do all vary in their practices !!
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nicky948
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by nicky948 » Mon Feb 04, 2019 8:25 pm
Foggy wrote:
There will be a final review, either at the point of the payment or the next anniversary point, whichever arrives first, mainly concentrating on income, rather than expenditure. Technically, until they issue that certificate you are still in the IVA and bound by it, although not making regular payments and, if an anniversary passes they are supposed to conduct a review --- not sure that they all do though. In my case a review fell between the last payment and the certificate issue and my IP simply wrote to all saying "There is no point in conducting a review because it would be the same as the last review, therefore I propose not to conduct one". IP's do all vary in their practices !!



Thank you for your advice once again. It's such a massive headache and so stressful , I personally thought an IVA would take this all away but it's worse.

Will never have one again, that's for sure.

I asked the IVA company what their early figure would be to close off my IVA early , so fingers crossed they won't decline it as that's the figure they have given me!!

Wish me luck
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by Foggy » Mon Feb 04, 2019 9:06 pm
I wish you the best of luck --- I have to say that it is inusual for a firm to suggest any figure other than a full settlement. Might I ask who you are with ?
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nicky948
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by nicky948 » Mon Feb 04, 2019 9:25 pm
Foggy wrote:
I wish you the best of luck --- I have to say that it is inusual for a firm to suggest any figure other than a full settlement. Might I ask who you are with ?



Yes it's credit fix. I emailed the variation insolvency practitioner what my final figure would be if my dad paid this off....

He came back with...

I understand that you wish to make a full and final offer to close your case early.



The full and final settlement amount required to close your case would be the outstanding balance on your file and a further 12 months payments for the equity in your property. I confirm this is £4,560. This is the amount that your creditors would be expecting from you in order to allow the case to be closed early.
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nicky948
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by nicky948 » Mon Feb 04, 2019 9:28 pm
Sorry insolvency advisor
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Foggy
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by Foggy » Tue Feb 05, 2019 7:56 am
nicky948 wrote:
Foggy wrote:
I wish you the best of luck --- I have to say that it is inusual for a firm to suggest any figure other than a full settlement. Might I ask who you are with ?



Yes it's credit fix. I emailed the variation insolvency practitioner what my final figure would be if my dad paid this off....

He came back with...

I understand that you wish to make a full and final offer to close your case early.



The full and final settlement amount required to close your case would be the outstanding balance on your file and a further 12 months payments for the equity in your property. I confirm this is £4,560. This is the amount that your creditors would be expecting from you in order to allow the case to be closed early.


That is uncommonly helpful of Creditfix and I have to give them credit for being of assistance here. Although they are jumping the gun, as it is the creditors who decide, But .... Good Luck.
katieweeks1
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by katieweeks1 » Tue Feb 12, 2019 4:15 pm
nicky948 wrote:
Foggy wrote:
I wish you the best of luck --- I have to say that it is inusual for a firm to suggest any figure other than a full settlement. Might I ask who you are with ?



Yes it's credit fix. I emailed the variation insolvency practitioner what my final figure would be if my dad paid this off....

He came back with...

I understand that you wish to make a full and final offer to close your case early.



The full and final settlement amount required to close your case would be the outstanding balance on your file and a further 12 months payments for the equity in your property. I confirm this is £4,560. This is the amount that your creditors would be expecting from you in order to allow the case to be closed early.


Hi Nicky! I am just jumping in here as (speaking from experience) I am also with Credit Fix and my advisor was also very helpful (too helpful) in telling me that if I offered the full amount (remaining payment total) as an F&F then it would definitely get accepted. They even gave me the figure to offer. My Father actually offered more than this amount and it was rejected!
I do not want to bring you down but I have been stung by doing exactly what was told of me by CreditFix - which is very disappointing so I am very interested as to hear how this goes for you?

I am lucky that my father has still got his pot of money for me to offer as he is desperate for me to get out of this IVA but my creditors don't want it! Or CF are not doing something quite right. I am waiting a few more months before trying again. As I am hoping surely they will accept that same amount originally offered after more payments have been made?!

Do let me know how it goes! Thank you so much and good luck!
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nicky948
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by nicky948 » Tue Feb 12, 2019 5:31 pm
katieweeks1 wrote:
nicky948 wrote:
Foggy wrote:
I wish you the best of luck --- I have to say that it is inusual for a firm to suggest any figure other than a full settlement. Might I ask who you are with ?



Yes it's credit fix. I emailed the variation insolvency practitioner what my final figure would be if my dad paid this off....

He came back with...

I understand that you wish to make a full and final offer to close your case early.



The full and final settlement amount required to close your case would be the outstanding balance on your file and a further 12 months payments for the equity in your property. I confirm this is £4,560. This is the amount that your creditors would be expecting from you in order to allow the case to be closed early.


Hi Nicky! I am just jumping in here as (speaking from experience) I am also with Credit Fix and my advisor was also very helpful (too helpful) in telling me that if I offered the full amount (remaining payment total) as an F&F then it would definitely get accepted. They even gave me the figure to offer. My Father actually offered more than this amount and it was rejected!
I do not want to bring you down but I have been stung by doing exactly what was told of me by CreditFix - which is very disappointing so I am very interested as to hear how this goes for you?

I am lucky that my father has still got his pot of money for me to offer as he is desperate for me to get out of this IVA but my creditors don't want it! Or CF are not doing something quite right. I am waiting a few more months before trying again. As I am hoping surely they will accept that same amount originally offered after more payments have been made?!

Do let me know how it goes! Thank you so much and good luck!



Katieweeks1
Thank you for your message.

Oh wow that's crazy, I must say until I have the completion certificate in my hands I'm not getting my hopes up at all as you just never know which way it will go but praying it does lol.

Did you ask the reason why it was rejected? I'm aware that at least 75% of the creditors have to agree the amount for it to be agreed?

It doesn't make sense, if someone offered you a quick offer to clear it you would think they would accept it.

Thanks for your story and feedback, I will keep you posted.
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nicky948
Posts: 22
by nicky948 » Tue Feb 12, 2019 5:33 pm
nicky948 wrote:
katieweeks1 wrote:
nicky948 wrote:


Yes it's credit fix. I emailed the variation insolvency practitioner what my final figure would be if my dad paid this off....

He came back with...

I understand that you wish to make a full and final offer to close your case early.



The full and final settlement amount required to close your case would be the outstanding balance on your file and a further 12 months payments for the equity in your property. I confirm this is £4,560. This is the amount that your creditors would be expecting from you in order to allow the case to be closed early.


Hi Nicky! I am just jumping in here as (speaking from experience) I am also with Credit Fix and my advisor was also very helpful (too helpful) in telling me that if I offered the full amount (remaining payment total) as an F&F then it would definitely get accepted. They even gave me the figure to offer. My Father actually offered more than this amount and it was rejected!
I do not want to bring you down but I have been stung by doing exactly what was told of me by CreditFix - which is very disappointing so I am very interested as to hear how this goes for you?

I am lucky that my father has still got his pot of money for me to offer as he is desperate for me to get out of this IVA but my creditors don't want it! Or CF are not doing something quite right. I am waiting a few more months before trying again. As I am hoping surely they will accept that same amount originally offered after more payments have been made?!

Do let me know how it goes! Thank you so much and good luck!



Katieweeks1
Thank you for your message.

Oh wow that's crazy, I must say until I have the completion certificate in my hands I'm not getting my hopes up at all as you just never know which way it will go but praying it does lol.

Did you ask the reason why it was rejected? I'm aware that at least 75% of the creditors have to agree the amount for it to be agreed?

It doesn't make sense, if someone offered you a quick offer to clear it you would think they would accept it.

Thanks for your story and feedback, I will keep you posted.


Katieweeks1

Can I ask, has this caused any problems for you in regards with CF with it being rejected?
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