How much do I have to pay back now I have won £20,000?

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AIKIJOHN
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by AIKIJOHN » Sun Jul 08, 2018 9:36 pm
Hi All,

Posing here in the understanding i am not financially minded so hoping someone may know what to do or if i can do anything.

Backstory - 3 years ago i was in major financial disarray, loand creditcards too much to save. I signed up to an IVA and have dilligently paid it since. Total debt amounted too around £12000 with the debtors expecting around 7500, i have paid over 3 already.

I called yesterday in the understanding i wanted to settle it as i had the major good fortune of winning £20000, i expected to clear all debts and start afresh.

Here is the thing, i am being told of a 100p to £1 thing due to this being whats classed as a windfall. Of the 20k i am being told i am liable to pay going on 18k back with fees, interest and insolvency fees.

I am not certain i am being told everything from the insolvency agency i called. Is there anything i can do to ensure i see more of the money?

I was advised to offer £15k but was told it could be denied - i was also told the 18k was without mandatory interest rates so i could literally end up with nothing.

Is there anything i can do or is this just the way it is?
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luluj
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by luluj » Mon Jul 09, 2018 3:48 am
Whilst in your iva and windfall received is taken to paying your iva as you remain liable for the FULL amount of debt plus IP fees plus Statutory Interest.

You can make a full and final offer to close your iva at 100p on the £ plus IP fees seeking an agreement statutory interest is not taken - there is no guaranteement it will be approved but it has for others in the past.

Your credit file will remain showing the iva until the 6th anniversary of the start date if closure is approved.
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Foggy
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by Foggy » Mon Jul 09, 2018 7:01 am
To fully cover a debt of £12k, you would need to pay in around £ 16,000 plus the statutory interest, which over the three years so far would be around £ 2800 --- so a total of £18,600.

You have paid £3,000 so should expect to pay in around £15,600 of the windfall.

As you can see, the figures differ greatly from those quoted by your IP -- I am working on the usual amounts charged. Your IP could have agreed a different amount of fees with the creditors -- this will be detailed in the report of the initial meeting, so dig that out and check.

In the meantime ask your IP for a written breakdown of what will be required to settle the IVA.
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Lisa Thomas
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by Lisa Thomas » Mon Jul 09, 2018 9:02 am
I agree c£18k less the £3k paid on account but will depend on what costs have been approved/incurred by your IP firm.

You could ask creditor to waive their right to statutory interest, which if approved would give you back a bit more.
AIKIJOHN
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by AIKIJOHN » Mon Jul 09, 2018 11:04 am
Lisa Thomas wrote:
I agree c£18k less the £3k paid on account but will depend on what costs have been approved/incurred by your IP firm.

You could ask creditor to waive their right to statutory interest, which if approved would give you back a bit more.


Its funny you mentioned that, the Insolvency company suggested i offer 15k but they also said that 18,075 or so is with them already saying to defer the statutory interest.

i dont know im just worried im being taken for more than they should be
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Lisa Thomas
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by Lisa Thomas » Mon Jul 09, 2018 11:27 am
You shouldn't 'offer' anything as you have to pay all of the funds over unless and until the total debts, interest and costs have been paid in full so there is not normally any negotiation.

You could however propose a variation to ask them to waive their statutory rights to the interest (or perhaps pay a lower dividend so that you can get more back but not sure why creditors would accept that).

I'm not sure what you mean by '18,075 or so is with them already' - can you clarify please?
AIKIJOHN
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by AIKIJOHN » Mon Jul 09, 2018 11:33 am
Hi Lisa.
I was advised by the insolvency practitioner to offer an amount of money in the hopes they accept it

I’m confused by the Iva in general as by my calculations I barely hit 15000 altogether with fees. I may be reading it incorrectly though
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Lisa Thomas
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by Lisa Thomas » Mon Jul 09, 2018 1:38 pm
As regards costs you need to consider:

How much were any Nominee fees?

How much are the Supervisors costs to date?

How much are their costs to closure?
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Lisa Thomas
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by Lisa Thomas » Mon Jul 09, 2018 1:39 pm
A lot of IP's charge £500 for calling a variation meeting so bear in mind any 'offer' you put forward will likely increase costs further.
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