Iva settlement offer

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liz1234
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by liz1234 » Tue Mar 13, 2018 11:34 am
I entered into an IVA in Dec 2016 - payments for the initial 12 months are £185 and for the remaining 4 years they are £98 (I owed money for council tax and the council wanted to ensure I could afford to pay my council tax going forward hence the change in amounts after 12 months). Due to some issues with Aperture, the IVA payments only started leaving my account in June therefore I'm 10 months into the IVA officially. I have £5074 outstanding to pay, and I am considering asking my dad if he would lend me £5000 to make an offer in settlement of the IVA. The actual amount that I owe is approx 4 times that. I was wondering, does anybody know whether, if the IP accepts this offer, they will then still expect ongoing payments to satisfy the IVA.
I know that the IVA will still show on my account until the end of the 6year period, I'm just really struggling financially (I had to enter into the IVA as my husband left me in a mess) and could do without paying this amount every month if I can help it, although I do understand the creditors are entitled to it and they have been more than fair allowing me to pay this lesser amount every month.
Thanks!!
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Foggy
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by Foggy » Tue Mar 13, 2018 11:52 am
liz1234 wrote:
I entered into an IVA in Dec 2016 - payments for the initial 12 months are £185 and for the remaining 4 years they are £98 (I owed money for council tax and the council wanted to ensure I could afford to pay my council tax going forward hence the change in amounts after 12 months). Due to some issues with Aperture, the IVA payments only started leaving my account in June therefore I'm 10 months into the IVA officially. I have £5074 outstanding to pay, and I am considering asking my dad if he would lend me £5000 to make an offer in settlement of the IVA. The actual amount that I owe is approx 4 times that. I was wondering, does anybody know whether, if the IP accepts this offer, they will then still expect ongoing payments to satisfy the IVA.
I know that the IVA will still show on my account until the end of the 6year period, I'm just really struggling financially (I had to enter into the IVA as my husband left me in a mess) and could do without paying this amount every month if I can help it, although I do understand the creditors are entitled to it and they have been more than fair allowing me to pay this lesser amount every month.
Thanks!!


As you say -- your creditors are looking at getting back in the region of £5074 in monthly paymwents, if the IVA is left to run. So a lump sum now will be saving them a chunk in admin costs over the next few years and should be looked at favourably. Your payments are a little on the ower end of the scale, which does reduce wriggle room, but I would say the offer of £5k would be looked at very seriously.

It is for the IP to put the offer to creditors - it is not his decision to make. Once the offer is accepted and the payment made to the IP you will not be required to make any more periodic payments, but will have to pay over any lottery wins and the like until the certificate of completion is issued (which can, in Aperture's case, take up to 6 months). After that your finances are entirely your own business ( apart from PPI ).
liz1234
Posts: 2
by liz1234 » Tue Mar 13, 2018 1:05 pm
Foggy wrote:
liz1234 wrote:
I entered into an IVA in Dec 2016 - payments for the initial 12 months are £185 and for the remaining 4 years they are £98 (I owed money for council tax and the council wanted to ensure I could afford to pay my council tax going forward hence the change in amounts after 12 months). Due to some issues with Aperture, the IVA payments only started leaving my account in June therefore I'm 10 months into the IVA officially. I have £5074 outstanding to pay, and I am considering asking my dad if he would lend me £5000 to make an offer in settlement of the IVA. The actual amount that I owe is approx 4 times that. I was wondering, does anybody know whether, if the IP accepts this offer, they will then still expect ongoing payments to satisfy the IVA.
I know that the IVA will still show on my account until the end of the 6year period, I'm just really struggling financially (I had to enter into the IVA as my husband left me in a mess) and could do without paying this amount every month if I can help it, although I do understand the creditors are entitled to it and they have been more than fair allowing me to pay this lesser amount every month.
Thanks!!


As you say -- your creditors are looking at getting back in the region of £5074 in monthly paymwents, if the IVA is left to run. So a lump sum now will be saving them a chunk in admin costs over the next few years and should be looked at favourably. Your payments are a little on the ower end of the scale, which does reduce wriggle room, but I would say the offer of £5k would be looked at very seriously.

It is for the IP to put the offer to creditors - it is not his decision to make. Once the offer is accepted and the payment made to the IP you will not be required to make any more periodic payments, but will have to pay over any lottery wins and the like until the certificate of completion is issued (which can, in Aperture's case, take up to 6 months). After that your finances are entirely your own business ( apart from PPI ).


Thank you for your reply.
I might even offer them up to £6000 (if my dad agrees...) because I just want rid of it and don't want to worry about having to find that amount every month (although as I say I do appreciate it's not a lot to some people).
Do you think if I made a higher offer they'd be more likely to put it to the creditors and the creditors may be more likely to accept?

Thanks for your help :D
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Foggy
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by Foggy » Tue Mar 13, 2018 1:11 pm
Liz, whatever offer you make the IP is obliged to put it to creditors and it is for the creditors to decide. However the support of your IP can go a long way. Over the years I have seen low offers accepted as well as high ones refused and I think it has as much to do with the weather on the day of the meeting as anything else ! But in all seriousness, at the end of the day, it is a business decision and a lump sum makes better sense all round.
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Lisa Thomas
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by Lisa Thomas » Thu Mar 15, 2018 10:12 am
Do not offer £6k.

£5k is a very reasonable offer, especially considering the time and costs savings if you settle so early.

You could even offer less.

Try £4k and see how creditors react.
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