IVA OR NOT

Get expert opinion. This is the place for new questions to be posted.
8 posts Page 1 of 1
ams
Posts: 5
by ams » Wed Aug 29, 2018 5:59 am
Hi there forum,

Need some help please.
I am considering to enter the IVA or not, had conversation with aperture. However, I am fickle minded with 6 yrs to go on file and hands tied down, limited options to get jobs due to credit rating (I work in technology). I need help to determine if anyway i can find out, post entering into IVA the total amount i must pay due to selling property or any windfall gain, loan from family is going to be that has been agreed as a monthly payment plus any IP fee or is it going to be all the money that has come as result of windfall gain?

My total debt is 70k. Monthly payments will be in region of 450. Equity released from house is also going to be 70k. So with 5 or 6 yrs clause, by selling house I must pay roughly 30k and not all the 70k should I sell in the next few months even if post entering a month or 2 in an IVA. Any chance I can get my property excluded from the IVA?

I am worried if I loose job tomorrow and no money left to support kids etc and I decided to pay the creditors. I will again be in credit however there is chance to secure job or loan whereas with iva none of that can happen.

Thank you !
User avatar
Lisa Thomas
Industry Expert
Posts: 7046
Contact
by Lisa Thomas » Wed Aug 29, 2018 8:27 am
ams wrote:
Hi there forum,

Need some help please.
I am considering to enter the IVA or not, had conversation with aperture. However, I am fickle minded with 6 yrs to go on file and hands tied down, limited options to get jobs due to credit rating (I work in technology).

Not all IVAs will last for 6 years - IVAs using standard protocol terms will have this timeline but R3 terms can be more flexible.

Our of interest why would your credit rating affect your employment?


I need help to determine if anyway i can find out, post entering into IVA the total amount i must pay due to selling property or any windfall gain, loan from family is going to be that has been agreed as a monthly payment plus any IP fee or is it going to be all the money that has come as result of windfall gain?

An IVA is usually compared to what creditors would receive in Bankruptcy. As the costs tend to be higher in BKY IVAs can often be more attractive.

You would then base your offer to be equally, or more attractive than that which creditors would get in BKY - the more attractive the offer the more likely they are to accept it.


My total debt is 70k. Monthly payments will be in region of 450. Equity released from house is also going to be 70k. So with 5 or 6 yrs clause, by selling house I must pay roughly 30k and not all the 70k should I sell in the next few months even if post entering a month or 2 in an IVA. Any chance I can get my property excluded from the IVA?

Yes you can propose excluding the property - again depends on what you are offering in lieu of it and how it compares to BKY.


I am worried if I loose job tomorrow and no money left to support kids etc and I decided to pay the creditors. I will again be in credit however there is chance to secure job or loan whereas with iva none of that can happen.

I'm not sure what you mean, sorry?

Thank you !
User avatar
Foggy
Forum Expert
Posts: 27306
Contact
by Foggy » Wed Aug 29, 2018 8:29 am
Windfall clause (assumig you have the usual clauses) : If you get a windfall under £500 you keep it. If the windfall is over £500 it all goes into the IVA.

If you get a large enough windfall to cover full original debts (£70k), fees (around £13k) and statutory interest (8% p.a simple, calculated on the daily reducing balance) the the IVA will close early and you will get the excess back.

If you sell the house during the IVA you will lose all but 15% of the equity, up to the figure mentioned above. The house will not, in all probability, be allowed to be excluded.

You might be able to consider a lump sum IVA where you basically say "Here's £30k, can we call it quits", if you could raise £30k from friends and family. Or you could propose it as "If I sell my house and give you £30k, can we call it quits?"

To be honest, for a more individual solution, such as the lump sum solutions mentioned, you would be better served chatting to a smaller firm who will consider you as an individual. Hopefully Lisa, an IP with a smaller / medium sized firm will be able to comment.
ams
Posts: 5
by ams » Wed Aug 29, 2018 9:09 pm
Hi Lisa, much appreciate you taking the time to respond.

My response in line. With more queries and perhaps having discussion with you, if possible?


Lisa Thomas wrote:
ams wrote:
Hi there forum,

Need some help please.
I am considering to enter the IVA or not, had conversation with aperture. However, I am fickle minded with 6 yrs to go on file and hands tied down, limited options to get jobs due to credit rating (I work in technology).

Not all IVAs will last for 6 years - IVAs using standard protocol terms will have this timeline but R3 terms can be more flexible.

Ams- ok, it seems I need to discuss with you my option in detail .

Our of interest why would your credit rating affect your employment?

Ams- my employer checks credit rating every quarter being the financial sector employer.



I need help to determine if anyway i can find out, post entering into IVA the total amount i must pay due to selling property or any windfall gain, loan from family is going to be that has been agreed as a monthly payment plus any IP fee or is it going to be all the money that has come as result of windfall gain?

An IVA is usually compared to what creditors would receive in Bankruptcy. As the costs tend to be higher in BKY IVAs can often be more attractive.

You would then base your offer to be equally, or more attractive than that which creditors would get in BKY - the more attractive the offer the more likely they are to accept it.

Ams- this seems we can negotiate ?
My credit file has few missed payments already in one month and possibly going to be more until i settle with an IVA or request creditors to wait for 3 months until i sell the property or borrow money from family etc. Is having few missed payments but not a default yet. Is this considered bad and option is to apply for an IVA now?


My total debt is 70k. Monthly payments will be in region of 450. Equity released from house is also going to be 70k. So with 5 or 6 yrs clause, by selling house I must pay roughly 30k and not all the 70k should I sell in the next few months even if post entering a month or 2 in an IVA. Any chance I can get my property excluded from the IVA?

Yes you can propose excluding the property - again depends on what you are offering in lieu of it and how it compares to BKY.

Ams- I am happy to offer lump sum of monthly amount post selling property or loan from family but not looking to part with all the equity due to reasons I can mention to IP. Also, iva will remain on my for 6 yrs? Will be getting completion certificate early post lump sum settlement or I've to wait for 6 yrs?


I am worried if I loose job tomorrow and no money left to support kids etc and I decided to pay the creditors. I will again be in credit however there is chance to secure job or loan whereas with iva none of that can happen.

I'm not sure what you mean, sorry?

Ams- something on my mind to consider and pay
All of debt instead of an IVA as I'll not be able to get job in finance again or anywhere else for that matter as most companies check credit file. I'll be skint fully but if missing payments on credit file is as bad iva than I do not have much choice?



Thank you !
ams
Posts: 5
by ams » Wed Aug 29, 2018 9:11 pm
Hi Foggy, thanks. Appreciate your advice and suggestion. Requested Lisa for help.

Foggy wrote:
Windfall clause (assumig you have the usual clauses) : If you get a windfall under £500 you keep it. If the windfall is over £500 it all goes into the IVA.

If you get a large enough windfall to cover full original debts (£70k), fees (around £13k) and statutory interest (8% p.a simple, calculated on the daily reducing balance) the the IVA will close early and you will get the excess back.

If you sell the house during the IVA you will lose all but 15% of the equity, up to the figure mentioned above. The house will not, in all probability, be allowed to be excluded.

You might be able to consider a lump sum IVA where you basically say "Here's £30k, can we call it quits", if you could raise £30k from friends and family. Or you could propose it as "If I sell my house and give you £30k, can we call it quits?"

To be honest, for a more individual solution, such as the lump sum solutions mentioned, you would be better served chatting to a smaller firm who will consider you as an individual. Hopefully Lisa, an IP with a smaller / medium sized firm will be able to comment.
User avatar
Lisa Thomas
Industry Expert
Posts: 7046
Contact
by Lisa Thomas » Thu Aug 30, 2018 8:30 am
ams wrote:
Hi Lisa, much appreciate you taking the time to respond.

My response in line. With more queries and perhaps having discussion with you, if possible?

sure.


Lisa Thomas wrote:
ams wrote:
Hi there forum,

Need some help please.
I am considering to enter the IVA or not, had conversation with aperture. However, I am fickle minded with 6 yrs to go on file and hands tied down, limited options to get jobs due to credit rating (I work in technology).

Not all IVAs will last for 6 years - IVAs using standard protocol terms will have this timeline but R3 terms can be more flexible.

Ams- ok, it seems I need to discuss with you my option in detail .

feel free.

Our of interest why would your credit rating affect your employment?

Ams- my employer checks credit rating every quarter being the financial sector employer.

but what is the contractual issue if the credit report is negative?



I need help to determine if anyway i can find out, post entering into IVA the total amount i must pay due to selling property or any windfall gain, loan from family is going to be that has been agreed as a monthly payment plus any IP fee or is it going to be all the money that has come as result of windfall gain?

An IVA is usually compared to what creditors would receive in Bankruptcy. As the costs tend to be higher in BKY IVAs can often be more attractive.

You would then base your offer to be equally, or more attractive than that which creditors would get in BKY - the more attractive the offer the more likely they are to accept it.

Ams- this seems we can negotiate ?

Ultimately creditors will have to approve your proposals (or you would need to accept their modifications) to get an IVA in place - you need 75% in value of creditors VOTING to get the IVA approved.


My credit file has few missed payments already in one month and possibly going to be more until i settle with an IVA or request creditors to wait for 3 months until i sell the property or borrow money from family etc. Is having few missed payments but not a default yet. Is this considered bad and option is to apply for an IVA now?

No it's common - you are insolvent hence the arrears and need to consider an insolvency procedure.




My total debt is 70k. Monthly payments will be in region of 450. Equity released from house is also going to be 70k. So with 5 or 6 yrs clause, by selling house I must pay roughly 30k and not all the 70k should I sell in the next few months even if post entering a month or 2 in an IVA. Any chance I can get my property excluded from the IVA?

Yes you can propose excluding the property - again depends on what you are offering in lieu of it and how it compares to BKY.

Ams- I am happy to offer lump sum of monthly amount post selling property or loan from family but not looking to part with all the equity due to reasons I can mention to IP. Also, iva will remain on my for 6 yrs? Will be getting completion certificate early post lump sum settlement or I've to wait for 6 yrs?


No see my video here on credit rating. you will still have to wait 6 years from the start. https://youtu.be/PV4RzUY4BRM


I am worried if I loose job tomorrow and no money left to support kids etc and I decided to pay the creditors. I will again be in credit however there is chance to secure job or loan whereas with iva none of that can happen.

I'm not sure what you mean, sorry?

Ams- something on my mind to consider and pay
All of debt instead of an IVA as I'll not be able to get job in finance again or anywhere else for that matter as most companies check credit file. I'll be skint fully but if missing payments on credit file is as bad iva than I do not have much choice?

Is your property jointly or solely owned?




Thank you !
User avatar
Foggy
Forum Expert
Posts: 27306
Contact
by Foggy » Thu Aug 30, 2018 9:02 am
Ams ... drop Lisa an email or give her a ring (probably best to agree a time by email first though). Far easier than discussing fine detail on an open forum :-)
User avatar
kallis3
Forum Expert
Posts: 73718
Contact
by kallis3 » Thu Aug 30, 2018 1:00 pm
I agree with Foggy - speak directly - you don't want everyone knowing your business in detail.
8 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”

Who is online

Users browsing this forum: No registered users and 29 guests