Lump sum offer

Get expert opinion. This is the place for new questions to be posted.
11 posts Page 1 of 1
Anewhope
Posts: 10
by Anewhope » Mon Mar 12, 2018 11:01 pm
I’m in the process of applying for an Iva through stepchange , we’ve gone over my income and expenditure and I’m looking at around £89 per month . This equates to a fairly low 7p / £ but was told this still can work and the low amount is down to the fact I’m out of work for health reasons and income is only through PIP.
Anyway , my wife’s grandparents have offered to give me up to £7000 to offer as a lump sum full and final payment only , I’ve seen other posts regarding full and final payment can be under what you would pay over the full term but was wondering whether anyone can advise if I should just offer the whole £7k considering my monthly payments would be fairly low and maybe this would make the lump sum more appealing ? I just don’t want to take more money than necessary but still want the lump sum accepted .
User avatar
Foggy
Forum Expert
Posts: 25885
Contact
by Foggy » Tue Mar 13, 2018 8:03 am
If this is a possibility I would propose a "lump sum IVA" at the outset, rather than a 5 / 6 year monthly payment arrangement. This would apear to be a more attractive option, as a payment based only on PIP is on shaky ground in the first place and likely to fail anyway!
If you go in at £5k the creditors will be getting the same as they would have been with monthly payments (allowing for admin savings). Speak to Stepchange (or, indeed, a different firm) and discuss the possibility -- do not mention that you would have up to £7k available as they will simply tell you to offer the lot.
Anewhope
Posts: 10
by Anewhope » Tue Mar 13, 2018 8:15 am
Great thanks , that what I thought would happen if I spoke to advisor about this , that they would just say offer the lot!
I’m basically at the point where I’ve just sent all my documentation off to the advisor to look at after having an initial appointment so I’ll call them up and ask to proceed with a lump sum rather than monthly .
User avatar
size5
Industry Expert
Posts: 3080
Contact
by size5 » Tue Mar 13, 2018 6:13 pm
Stepchange are the only organisation that I have come across where financial statements do not offset DLA/PIP in its entirety.

The truth is that you have no disposable income at all, and a monthly payment offer would be rejected by your creditors anyway.

How much debt do you have? Do you have any assets to lose?
Anewhope
Posts: 10
by Anewhope » Tue Mar 13, 2018 7:52 pm
Interesting , the advisor I’ve spoken to so far was quite confident in the monthly Iva working , based upon my wife’s income supporting all the bills etc .
Debt is around 50k and I have no assets , waiting on a call back to organise a lump sum being put forward instead now .
User avatar
size5
Industry Expert
Posts: 3080
Contact
by size5 » Wed Mar 14, 2018 4:37 pm
A lump sum has more chance of being accepted than a monthly payment, that is for sure.

My own question would then be, given that you have large debts, no assets and are solely reliant on State Benefits for income, why don't you just go Bankrupt? £680 is a lot less to pay than a lump sum?

Regards.
User avatar
Foggy
Forum Expert
Posts: 25885
Contact
by Foggy » Wed Mar 14, 2018 4:51 pm
size5 wrote:
A lump sum has more chance of being accepted than a monthly payment, that is for sure.

My own question would then be, given that you have large debts, no assets and are solely reliant on State Benefits for income, why don't you just go Bankrupt? £680 is a lot less to pay than a lump sum?

Regards.


Has Stepchange explored this option with you ?
User avatar
kallis3
Forum Expert
Posts: 72997
Contact
by kallis3 » Wed Mar 14, 2018 5:02 pm
How about a DRO?
User avatar
Foggy
Forum Expert
Posts: 25885
Contact
by Foggy » Wed Mar 14, 2018 5:43 pm
kallis3 wrote:
How about a DRO?


Debt level is over the limit.
User avatar
kallis3
Forum Expert
Posts: 72997
Contact
by kallis3 » Wed Mar 14, 2018 6:23 pm
Sorry Foggy - missed that one!!
User avatar
Lisa Thomas
Industry Expert
Posts: 6631
Contact
by Lisa Thomas » Thu Mar 15, 2018 10:23 am
Do you own any property? Is there a reason you are not considering Bankruptcy?

If your Nan has funds you could avoid an IVA altogether and do a deal direct with your creditors, depending on the quantity and figures involved.
11 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”

Who is online

Users browsing this forum: No registered users and 47 guests