IVA settlement figure

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Martin.iva

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Post by Martin.iva » Sat Sep 18, 2010 12:48 pm
IVA settlement figure
Hi, we are currently in an IVA, about 1 year into our 6 years (yes 6) of payments, so 5 years to go. Our question is ... if we find a friend who would consider paying the iva off for us, with the iva people only accept an offer equal to the amount still owing (eg: 5 x 12 x £750 = £45,000), or would they consider an offer below this? If the latter, what would be a sensible percentage to offer? Thank you, Martin
 
 

kallis3

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Post by kallis3 » Sat Sep 18, 2010 1:06 pm
Hi Martin and welcome.

If you are looking at offering a full and final, this should usually be as close to the original dividend as possible.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk
 
 

Adam Davies

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Post by Adam Davies » Sat Sep 18, 2010 2:59 pm
Hi and welcome
There should be some savings on IP fees, in your case around 1400 pounds a year, so possibly an offer around the 38k mark may be acceptable to your creditors.
Is there an equity release clause in your IVA ?
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Andam Davies
 
 

Martin.iva

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Post by Martin.iva » Thu Sep 23, 2010 7:08 pm
Thank you for your replies.
Andy - there is an equity release clause but the calculation in the agreement is along the lines of .... they take 85% of valuation, and if that results in less than 5k over mortgage the property is disregarded. It is likely the 85% figure will be less than 5k over mortgage, so I guess this calculation is still valid for a 'full and final' settlement offer, in which case offering around 38k is reasonable?
Martin
 
 

Broke of London

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Post by Broke of London » Thu Sep 23, 2010 7:15 pm
You have generous friends!!! Good luck with the offer.
 
 

kallis3

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Post by kallis3 » Thu Sep 23, 2010 7:18 pm
I hope you can get a full and final agreement sorted.

You may find that you have to get a property valuation first though?
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk
 
 

Martin.iva

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Post by Martin.iva » Thu Sep 23, 2010 8:54 pm
Yes I do have generous friends! It's not a done deal by any means, but a good friend may have 40k available in the new year (lucky them!), and may be willing to lend it to us - obviously for us to repay but without quite as stringent control as the official guys.
Home valuation will indeed be required, but I think 85% of house value will be under 5k over mortgage (BIG mortgage!).
 
 

MelanieGiles

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Post by MelanieGiles » Thu Sep 23, 2010 11:52 pm
If fees are based on a percentage of realisations - which is the most common basis these days - there may be no reduction - so make sure you check this out with your IP before proceeding.
Regards, Melanie Giles, Insolvency Practitioner
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