Early settlement

Get expert opinion. This is the place for new questions to be posted.
6 posts Page 1 of 1

Adz_0

Posts: 1
Joined: Sat Feb 22, 2020 3:26 pm

Post by Adz_0 » Sat Feb 22, 2020 3:55 pm
Hi there!

Myself and my wife have been in a joint IVA with stepchange for the last 4 years and 8 months and our IVA ends in June.

We're forecast to have paid 74 pence in the pound. The original forecast was 15 pence so I think we've done quite well!

We currently pay £395 per month into the IVA and we have 4 payment left which amounts to £1580.

The issue we have now is that we are struggling financially. Our fuel costs amount to over £550 per month alone, just to get to work and back, taking our child to school etc.

We were just going to carry on struggling until June, as the IVA is almost over with, so we were just going to get through it. However, a family member has since found out about our situation and very kindly offered to pay the full amount left to pay to the IVA which is £1580.

Obviously, this is a huge relief to us and an end to a very difficult 5 years, and the debt previous to that.

I'm going to call Stephchange on Monday to offer this, but I'm concerned that they'll say just to carry on with the payments as it's nearly over anyway.
However, I'm going to explain that if this isn't possible, that our monthly payments are going to have be reviewed, as we are really struggling. From the middle of this current month, we have basically been living on nothing, and I still need another weeks worth of fuel and food shopping just to get to work and back.

So the question I'm asking I suppose, is that because we are offering the full amount of the remaining payments, will this be accepted and can it be accepted quickly?
The other option is to lower our contributions, however we don't want to do that. We take full responsibility for our debt and have worked so hard, like many others here, to dedicate ourselves to pay what we owe.

Just to note, we don't have the equity release requirement like many others here, therefor it's just a straight 5 year IVA.

As final note, I must say stepchange have been brilliant over the years. They have been sensible and fair, and it has helped change our lives. But we want it to be over with now!! Haha

Apologies if I've rambled!

Thank you,
Adam :)

Foggy

User avatar
Forum Expert
Posts: 31366
Joined: Fri Dec 17, 2010 11:14 am
Location: United Kingdom

Post by Foggy » Sat Feb 22, 2020 4:15 pm
It is going to take at least 2 months, maybe 3 to arrange a variation to pay the lump sum, as well as, potentially, add some £500 to the fees. Could not this kind donor simply make the payments on your behalf until the IVA is done and dusted ?
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

luluj

User avatar
Forum Expert
Posts: 10927
Joined: Sun Dec 09, 2007 6:54 am
Location: United Kingdom

Post by luluj » Sun Feb 23, 2020 7:19 pm
Echo foggys thoughts... get the donor to pay your monthly amount for you between now and June which will give you some breathing space on other matters.
Sharing from experiences of dealing with debt

There is a solution for everyone .... Just need to stay positive !

Look at my blog "All I wanted was a baby"

kallis3

User avatar
Forum Expert
Posts: 76004
Joined: Mon Mar 17, 2008 4:02 pm
Location: United Kingdom

Post by kallis3 » Sun Feb 23, 2020 8:43 pm
I am sure your donor will be able to help you out.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk

Foggy

User avatar
Forum Expert
Posts: 31366
Joined: Fri Dec 17, 2010 11:14 am
Location: United Kingdom

Post by Foggy » Sun Feb 23, 2020 8:47 pm
I should add --- the donor should not pay the money into your account at all ... you pay the iva as usual by DD and they give you the cash to use for shopping or whatever. Don't want a regular deposit to be mistaken for income.
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

Lisa Thomas

User avatar
Industry Expert
Posts: 7759
Joined: Wed Dec 03, 2014 10:26 am

Post by Lisa Thomas » Tue Feb 25, 2020 12:38 pm
It's not worth modifying at this late stage. Perhaps the family member could help you out with your payments instead, albeit, it will have to be classed as a gift and not a loan.
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk
6 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”