Full and final question

[nick the third]

Hi I have a quick question to ask the hive mind, regarding my IVA which started around 12 months ago...

My total IVA debts were around £25k, and if my IVA were to run for the full 6 year term, I would have repaid around £13k. This results in a dividend of 43p in the £, which I understand is quite generous for an IVA.

I have recently found out that I’m pregnant again with my third child, after which I’m unlikely to return to work due to childcare costs.

If this were the case I’d likely have to declare bankruptcy as I wouldn’t be able to continue my IVA.

However, after discussing this with a family member, they have said they could offer around £4K to end my IVA early, and avoid bankruptcy.

This is the maximum they could offer, and from my calculations, this would provide the creditors with a dividend of around 16 in the £.

Would this be acceptable? As is my only option

Thanks

[luluj]

Congratulations on your pregnancy.

You could offer the full and final outlining the clear reasoning, demonstrating the costs post birth for childcare and the consequences of bankruptcy.

A return of 16p in the pound is better than zero so creditors may be more likely to accept.

[Foggy]

So, creditors are expecting around another £10k if the IVA ran to term. You will probably pay in, maybe, another £1k before maternity leave hits, so, then £9k left.
If they accept your offer of £4k they will get a good chunk of that, after fees etc.
If they refuse and you file for BR they will get practically nothing (BR fees are much more than those in an IVA), assuming you have no assets they can grab ( house with lots of equity, the Monet in the downstairs loo, the Aston Martin in the garage ... that sort of thing ).

Congratulations on the impending arrival and good luck with the offer.