Lump sum to exit IVA early.

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spacedandbroke
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by spacedandbroke » Thu Jun 14, 2018 8:54 pm
Lump sum to exit IVA early.

Hi there,

I entered into an IVA last December, however, I really feel I was mis-sold the product as my debts totally just under 7k and the IP practitioner didn't offer me any alternatives they sold this as the best solution. In some ways it was, from what I gather in terms of researching debt solutions. However, I feel like prisoner having to declare everything and being scrutinised and not really being able to have a life. They wrote some of my debt off so I owed 5k from the start, I now owe 4.5 k. My yearly review is this december, however, I've calculated that if I sell some of my music equipment, really save money and do lots of overtime at work I could offer them 3.9 - 4k by December to exit the IVA. I dont want to declare the overtime, I'd just rather put the money aside and then pay it all off in one payment. By December the outstanding debt of the IVA should be 3.9 k anyway. Do you think they'll accept this? I'm in my twenties and I got into debt because I was interning for free in the creative industries and totally exploited thinking it would lead to a job and working lots of zero hour contracts so I already wasted over two years and the thought of having to spend the rest of my twenties living like this makes me feel very depressed and i'm panicking about how I'm going to be able to rent accomodation or move abroad or lead the life I want. Do you think this will be accepted? If not what are the best options for me? I know I could file a complaint about being mis-sold the product but I dont see any good coming of it. I just want to end this but I do see the advantage of having my debt written off.
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MerlinL14
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by MerlinL14 » Thu Jun 14, 2018 9:27 pm
I also think 7k is a small amount (in the scale of debt) to be offered an IVA, there are other alternatives available that could have been a better option. Proving it was missold is another matter and would be costly to pursue! You would have to declare the overtime as this could lead to your IP considering you in breach of the IVA.
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Foggy
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by Foggy » Fri Jun 15, 2018 6:51 am
The reasons you state for mis-selling apply to all of us in an IVA, you are not unique: "having to declare everything and being scrutinised and not really being able to have a life". I agree with Merlin that an IVA for a £7k debt is a heavy hammer to crack a relatively smal nut, but we do not know the full circumstances at the time.

Not declaring overtime will shoot you in the foot and see the IVA flushed down the toilet and you back to square one with, possibly, even more debt. When you make a F&F offer you need to declare the source of the monies and, if not from a verifiable third party, this will be examined. If you could get this sum "donated" by a third party (not, on the face of it, loaned) what you do to get this back to the donor after the IVA has concluded will be your own business.
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Lisa Thomas
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by Lisa Thomas » Fri Jun 15, 2018 11:55 am
Check what was in the original letters when your Nominee/IP wrote to you about why you have chosen the IVA over other options - the alternatives should have been explained in the letter and the reasons they have been discounted.
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