my IVA will probably now fail

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Post by Howard.1 » Fri Aug 27, 2010 6:13 pm

I am halfway though a 5 year IVA and am being made redundant at the end of this month. Due to my age and the current job market I am finding it very difficult to find a new position, let alone one with the same salary.

My payments to achieve a 25p dividend for creditors are very tight and as a result my IVA will probably now fail.

I am likely to receive £25,000 as a redundancy pay windfall and the amount outstanding on my IVA is £32,000.

I think my options are:

1. Immediately declare myself bankrupt and pay my creditors the £25,000. I currently rent my property, so little other assets are available. Clearly bankruptcy administration costs would reduce this figure.

2. Immediately offer my creditors the £25,000 in full and final settlement of the IVA. Any administration costs have already been paid. Perhaps I could keep some of the windfall to live on and use to move (for example) to find work. Would an offer of £20,000 be likely to be acceptable?

3. A further option could be to use the £25,000 as the deposit for a house, thus reducing my outgoings and (assuming a break in IVA payments is allowed whilst I attempt to find a new position) allowing me to complete the IVA.

Any advice would be appreciated before I write to my IP.

Best wishes, Howard

Adam Davies

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Post by Adam Davies » Fri Aug 27, 2010 7:17 pm
Hi Howard
Speak with your IP
I would think that you could keep a figure equal to six months net salary and the balance paid into your IVA with your creditors accepting this as a full and final payment thus concluding your IVA.
I hope they do agree this and good luck
Andam Davies


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Post by plasticdaft » Fri Aug 27, 2010 7:19 pm
Offering some of your redundancy as a full and final may be your best option but this really needs discussed with your IP who has all your case details.

Option 3 is probably a no go due to lack of mortgages available for people in IVA's.

When you say the amount outstanding on your IVA is £32k do you mean thats what you were expected to pay,because you actually owe creditors the FULL amount of your debts until your IVA concludes.

Another idea would be a 6 month payment break to allow you time to seek employment and then re-assess your situation then.

Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.


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Post by Shining » Sat Aug 28, 2010 6:14 am
All great advice above and I hope you get your IVA concluded and source a new position very soon. x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.


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Post by kallis3 » Sat Aug 28, 2010 6:55 am
Good luck from me Howard as well.

Hope you manage to find a new job and get your IVA sorted.
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.
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