Full and final settlement from own savings

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Lucilla89

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Post by Lucilla89 » Sun Jul 19, 2020 5:23 pm
Hello everyone,
My IVA is still quite fresh,only completed 10 months.
The total debt amounted to 23K, reduced to £7600 , 72 months of payments agreed at the start of the IVA,not a homeowner.
I am with Creditfix and since starting the IVA in September 2019 I moved home and managed to get utilities down quite a bit by switching, I communicated this and had a new I&E done which increased my monthly payment from £93 to £107.

My question may sound cheeky,asI know creditors are already writing off 67% of debt as it stands,although they are getting more than initially agreed because of the increased residual income. I have been given allowances to live within,but I have found that I can stilll save money,even after the revised payments. Creditfix is aware of all my income ( some of which will not be present in 12 months time as it is a postgraduate loan).
I have always loved frugally and never missed a payment before the IVA and maybe that is why I am not finding it particularly hard to save at the moment,and I started to consider the possibility of a f&f payment into the IVA in about 16 months.

Would this be possible or can a lump sum only come from a third party?I will be getting “free money” from the help to save account and I am able to save the excess £1000 a year between my student loan and my uni fees.

Would this be seen negatively?I don’t want to be stretching myself if there is no option to close this IVA early.

Sorry for the long post and I hope this makes sense?

Foggy

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Post by Foggy » Sun Jul 19, 2020 5:40 pm
Basically, if you are able to save this kind of money, you I&E review was done incorrectly and you have over declared your spending. The principle behind an IVA is that you pay back, not just the estimated payment sum, but, as your income increases / expenditure decreases, so does your disposable income / IVA payment. In a nutshell your allowances should be based on your actual spending. Take these away from your income and what is left is your IVA payment.

If your Help to Save account matures within the term of the IVA that, too, will be payable into the IVA as a windfall if over £500 ( I am referring to the bonus element only).

If CF are happy with your I&E and you can make these savings by living frugally it would be best to tuck them away somewhere and not draw undue attention to them. A F&F offer from those savings could be poking a sleeping bear with a sharp stick !
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

Lucilla89

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Joined: Sun Jul 19, 2020 5:10 pm

Post by Lucilla89 » Sun Jul 19, 2020 6:26 pm
I see your point there. As far as I can tell things are accurate,although I have an allowance for entertainment and sports of £120 combined and none of these activities are available during lockdown,so maybe that is part of why I feel like money left over.

My annual review is not far and they will be able to login my bank account and do the checks themselves,so I will see what comes of that 😀
Thank you for your answer .

Foggy

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Post by Foggy » Sun Jul 19, 2020 7:40 pm
Wow ... 10 years ago, when I went into my IVA ( mine and the ex's ) ... we had an entertainment, sports and hobbies allowance of £20, combined, between us !
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

Lucilla89

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Joined: Sun Jul 19, 2020 5:10 pm

Post by Lucilla89 » Mon Jul 20, 2020 4:19 am
I think in my case they did account for my child sports? I really don’t know, I see allowances quite generous and others really tight, having a look at it again they allowed us £20 for haircuts too,though that gets mostly used to go visit my family abroad once a year.

Foggy

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Post by Foggy » Mon Jul 20, 2020 8:09 am
I used to get a fiver for haircuts ( I am as bald as a billiard ball !! )
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

Radish

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Post by Radish » Mon Jul 20, 2020 12:48 pm
I lost a second job while in my IVA six months after commencing, my income + expenditure was minus £200 per month after IVA was paid, luckily I earned around £300 per month in overtime. Things we do when determined to get to the debt free status at the end of it.
IVA complete March 2014 after 6 years.
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