Full and final payment

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Zippy6971

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Post by Zippy6971 » Wed Jun 12, 2019 6:46 am
Im just starting my 4th year into my IVA which i started off with owing £48000 my first 2yrs i paid £195 per month the 3rd year it was £220 per month plus £4850 in ppi payments i have just recieve some inheritance in the sum of £37500 i know they will get the full amount but what would be a feasonalbe offer to them for a full and final payment as a family member has offer me some money to get me out of the IVA

Foggy

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Post by Foggy » Wed Jun 12, 2019 6:54 am
With the sight of £37k on the horizon they are unlikley to look at a reduced figure F&F now. The inheritance figure might well be enough to close the thing down early anyway, if you hit paying in the full debt, fees and possible statutory interest. You need to talk figures with your IP ---- if it falls short ask if they would consider removing the obligation to statutory interest --- but check your proposal paperwork as that might already have been exluded ( it was in mine).
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

Zippy6971

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Post by Zippy6971 » Wed Jun 12, 2019 6:55 am
Forgot to montion my IVA is with Credit fix

Zippy6971

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Post by Zippy6971 » Wed Jun 12, 2019 7:35 am
I have just worked the figures out and with the inheritance money paid to them they will have recieved £49670 and my original debt was 45000 so i hope thats enough

Lisa Thomas

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Post by Lisa Thomas » Thu Jun 13, 2019 8:47 am
I doubt it once costs and any statutory interest is added. (8% per annum)

Assuming statutory interest is included you might like to ask creditors to vary the VA and waive their rights to interest to keep the figures down.
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

Zippy6971

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Post by Zippy6971 » Sun Jun 16, 2019 8:41 am
Thu Jun 13, 2019 8:47 amLisa Thomas wrote:
I doubt it once costs and any statutory interest is added. (8% per annum)

Assuming statutory interest is included you might like to ask creditors to vary the VA and waive their rights to interest to keep the figures down.
If this is the case what would you think as a resonible final offer to them if a family member was to give me a gift of money to pay it off i have 2 years left and my payment has just increase from £220 to £368 due to getting a pay rise and mortgage going down your help would be greatly appreciated

Lisa Thomas

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Post by Lisa Thomas » Mon Jun 17, 2019 10:37 am
Do you own a property that you have more than £5k equitable interest in?

If not, then I calculate the total assets in your IVA might be c£55k if you have 2 years left to pay at £220 per month:

4,680
4,850
2,650
5,280
37,500
54,960

It would seem after costs and statutory interest there is unlikely to be any surplus returned to you.

If you do have more than £5k equitable interest in a property and the year extension applies to your IVA then a further year at £220 per month would total an extra £2,640.

Assuming the inheritance is paid over in full, your remaining contributions may therefore be £5,280 (if 2 years remaining ) or £7,920 (if 3 years remaining)

These are the figures you would base your offer on once you have established the equity position.
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

Zippy6971

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Post by Zippy6971 » Sat Jun 22, 2019 9:00 pm
Hi Lisa

My payment has just gone up to £368 so does that mean my offer should be 24 times that for 2yrs left or 36 if its 3yr

Foggy

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Post by Foggy » Sat Jun 22, 2019 9:06 pm
You need to base your offer on the new increased payment.
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
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