I am due compensation due to a serious road traffic accident

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john401
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by john401 » Tue Apr 10, 2018 3:44 am
I'm due compensation due to a serious road traffic accident in which myself and step son were involved in , will I have to hand over the full amount ,or can I pay a lump sum and continue my monthly repayments , I ask this as our family car is on its last legs and would like to purchase a newer one , I have also claimed for loss of earnings in this claim
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luluj
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by luluj » Tue Apr 10, 2018 5:00 am
I am no expert in this but I believe it depends what the compensation is being paid out for - loss of earnings is likely I would imagine will need to be put into the iva pot whereas compensation for health and ongoing support could be retain ...

Am sure when foggy arises this morning onto the forum he will be able to explain in much more detail on this.
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john401
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by john401 » Tue Apr 10, 2018 6:04 am
I have next to no contact from my iva company and to be honest it has been a complete shambles , I still receive emails and posts from whom I owe money too
Many of the emails state I can pay much less than the original figure and it seems that cancelling my iva and dealing with these are the easier option to going debt free ? :?:
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Foggy
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by Foggy » Tue Apr 10, 2018 6:56 am
Most (most!) IP's follow the procedure in BR regarding compensation in that payment for pain and suffering is yours to keep and payment for loss of earnings gets paid to creditors. Unfortunately, only your own IP can enlighten you as to his views !

Allowing the IVA to fail and dealing with creditors direct is not usually a good option. They will add back "lost " interest and the debt will grow significantly ! They will also be at liberty to enforce collection again and even pursue bankruptcy, should the need arise. Having agreed a debt solution they are not always happy to have it thrown away!

Which company are you with and how long have you been in the IVA ?
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john401
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by john401 » Tue Apr 10, 2018 7:02 am
Aperture And about a year , but those who I have debts with have offered one off reduced payment
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Foggy
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by Foggy » Tue Apr 10, 2018 7:10 am
john401 wrote:
Aperture And about a year , but those who I have debts with have offered one off reduced payment



Ah yes. Aperture are a little inventive sometimes with their interpretations of the terms and conditions and are a dismal failure with communication and timeliness .... but they do improve between mass case acquisitions!

Bearing in mind that offers do not always translate into actions the reduced payments sound interesting. However, you are not supposed to be negotiating with creditors without going through your IP. I would also warn that the compensation payment might already be an asset of the IVA and payable to the creditors, at least in part, if there has already been an offer made to you. Take as much advice as you can and tread carefully.
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john401
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by john401 » Tue Apr 10, 2018 7:17 am
I have not negotiated with any creditors however they are sending me offers of reduced one off payment
The iva isn't doing its job if I'm still getting harrassed and I'm entitled to end it if I'm unhappy about it
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Lisa Thomas
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by Lisa Thomas » Tue Apr 10, 2018 8:27 am
If you fail your IVA you are at risk of creditors commencing recovery proceedings against you and possibly at risk of being made Bankrupt, which is normally something you wanted to originally avoid if you have entered an IVA.

Creditors will be able to charge interest on the debts and its not guaranteed they will all allow you to settle the debts for a reduced sum.

Any assets you own, such as proper, will be at risk in Bankruptcy and you may have to make contributions form your income for 3 years..
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john401
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by john401 » Tue Apr 10, 2018 8:44 am
My total debts is 6000 I'm due over 10,000 I would have no issue with them taking the 6 or even 7 but not the whole lot
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kallis3
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by kallis3 » Tue Apr 10, 2018 8:46 am
Is that what is owed to your IVA, or your total debt?
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Foggy
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by Foggy » Tue Apr 10, 2018 9:12 am
john401 wrote:
I have not negotiated with any creditors however they are sending me offers of reduced one off payment
The iva isn't doing its job if I'm still getting harrassed and I'm entitled to end it if I'm unhappy about it



Yes, of course you are entitled to end it if you wish ... it is YOUR IVA after all. We just have to mention that there is a possible downside. Are you reporting this creditor contact to your IP ? ---They should be dealing with it.

Is your total debt six thousand pounds .. or is that a typo ? If so an IVA for 6k is a big hammer to crack a small nut !
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john401
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by john401 » Tue Apr 10, 2018 9:17 am
Yes it's a small debt a different company talked me into signing up to it
And the company used was dis honest and changed things to suit me apparently

That's why I am thinking about ending it and dealing with it myself , I want to pay it off I just feel it will be so much easier if I spoke to my solicitor and paid up directly :?:
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john401
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by john401 » Tue Apr 10, 2018 9:18 am
I do not believe I was given correct advice from the start and I never signed off all paperwork to enter into the iva.
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Lisa Thomas
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by Lisa Thomas » Tue Apr 10, 2018 10:34 am
You will need to know how much the costs are in the IVA to date (and to 'fail' it) to work out how much creditors would receive from the IVA.

Then work out what the creditors debts, plus interest form the date of each debt to date, less any payment form the Supervisor and whether you have enough funds to then pay everything off in full.

I suspect the outcome will be the same if you pay the funds into the IVA - either way the IVA costs have to be paid and interest might already be frozen in your IVA.

You could propose creditors to waive their right to interest.

Ultimately it seems that you may have enough to clear everything through the IVA, which means it may end early due to payment in full.

Any surplus would then be repaid to you.
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