IP wants to extend my IVA

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maria677
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by maria677 » Tue Aug 21, 2018 1:29 pm
My IP wants to extend my IVA for another 22 months using Variation. "The proposal is: In Nov 2016, the debtors advised they were separating and Mr C would be relocating into rented accommodation. Due to both the debtors being responsible for their own household expenditure, they were unable to maintain their contribution as per terms if the IVA, as a result the arrears accrued as above.... The debtors do not wish for their IVA to fail and we would therefore request that creditors accept funds paid to 8 August 2018 of £7,337 plus 31 contributions of £206, which is the remaining term of the IVA of 9 months, plus 22 months arrears. Therefore extending the term of the IVA to an estimated 82 months."
When we entered the IVA with my ex husband the advise was that we pay 60 payment and the debts will be written off. We have been good payers but since separation can't keep up with the estimated figures. Is it the only option for us to end the IVA? Can we ask for modification of the arrears to be removed after 9 remaining payments.???
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Foggy
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by Foggy » Tue Aug 21, 2018 1:38 pm
The extension is only to put right what you agreed to at the outset, so, in the end, you will have paid what was signed up for. You can ask for less, but the creditors can always refuse and the IVA will fail.
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maria677
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by maria677 » Tue Aug 21, 2018 1:58 pm
Foggy wrote:
The extension is only to put right what you agreed to at the outset, so, in the end, you will have paid what was signed up for. You can ask for less, but the creditors can always refuse and the IVA will fail.


The outstanding amount would be £4400 only. We both live in rented accommodation and don't have any valuables. What I don't understand is that from the £4400 half of the money wold go towards IP and admin fees so our creditors wouldn't compensate a lot. If I consider only remaining 9 payments our creditors would get 17.49p/£ against 18.03p/£ proposed on our proposal in 2014. Is it the only option to end my IVA without failing?
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Foggy
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by Foggy » Tue Aug 21, 2018 2:14 pm
At the end of the day it will be up to the creditors to decide if the offer is acceptable. The less you offer, the more likely they are to say no.

When my marriage went south we asked creditors to accept payments made to date, which was 32p in the pound rather than the 33p promised. We had made extra payments in the early days. They accepted (we were halfway through the term). But, unlike a normal F&F, you will probably only get one chance at it, so make the best offer you can.

If they refuse the IVA will fail and everything you have done so far will be flushed away. The creditors will add back lost interest and the debts will increase.

Incidentally -- out of that £4400 the IP should only get around 15%
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maria677
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by maria677 » Tue Aug 21, 2018 2:39 pm
Thanks for the advice. I'll ask for the fees to be checked then. I don't want the IVA to fail. Would it be reasonable to offer to extend for another 12 months and ask the remain to be written off? Do I have only one chance to propose to creditors?
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Foggy
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by Foggy » Tue Aug 21, 2018 2:47 pm
maria677 wrote:
Thanks for the advice. I'll ask for the fees to be checked then. I don't want the IVA to fail. Would it be reasonable to offer to extend for another 12 months and ask the remain to be written off? Do I have only one chance to propose to creditors?


In a full and final you can come back with a better offer, but in this case you are offering to put right missed payments, which could fail the IVA if the creditors don't forgive them. I doubt you will get a second chance (but I could be wrong).
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