How do I offer a settlement on my IVA

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kate236
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by kate236 » Wed Oct 24, 2018 2:26 pm
Hi i’ve been in an IVA for the last 2 and half years, my parents have found out and to say the least they are not very happy. They have offered to gift me the cash to pay off my remaining debt. I currently pay £300 per month and have another 30 months to go. How do I go about offering a settlement figure and what should I offer. Many thanks
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Lisa Thomas
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by Lisa Thomas » Wed Oct 24, 2018 2:50 pm
Hi Kate

You can watch my video here for info on F&F for info:

https://youtu.be/h4dozq9aGak

You have to put your offer in writing to your IP and ask them to call a variation meeting of creditors to vote on it. (You will need 75% in value of creditors who vote to vote in favour of it)

Send them the evidence that the funds are coming from your parents, as a gift. (i.e a copy of their bank statement to prove the funds are in their bank account and are not coming from your own assets that you have hidden)

Your IP may also want to see certified identification from your parents for money laundering purposes.

Make sure you word your letter to say that any contributions you pay into the IVA in the meantime whilst the offer is voted on by creditors will be deducted from the lump sum being paid over, if accepted.

Assuming everything continues in the normal way, there are no other assets to realise and there is no property extension to be dealt with it seems that you have c£9k of contributions to make.

The closer the offer is to that figure, the more attractive it is to creditors and more likely to accept, but also bear in mind the potential savings on administration etc in finishing the IVA early (although counter that with a presumed standard variation fee often charged by some IPS at £500)

An offer of maybe £6-7k may do it.
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Foggy
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by Foggy » Wed Oct 24, 2018 3:29 pm
Further to Lisa's comprehensive advice I would mention that what you are offering is a Full and Final offer, not a settlement. A settlement is generally taken as meaning that you are paying back the full original debt, plus fees and possible statutory interest ... a usually much more expensive animal.

The funds will need to go direct from your parent's account to the IP ... Not via your own account.
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luluj
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by luluj » Thu Oct 25, 2018 2:46 am
My mum was angry when she found out ... but despite that..her knowing turned out to be the best thing and she was so supportive .... had to rebuild trust a little and had to get used to being questioned on bits we purchased afterwards and even now 8 years on occasionally she asks if we are financially ok ....
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