Myself and spouse ran up credit to the sum of 72000

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mick
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by mick » Tue Aug 22, 2017 6:38 pm
Myself and spouse ran up credit to the sum of 72000. I have an Iva and payback 1311 per month and have just completed 3 and a half years so I called up my Iva officer to find out how much more to pay they told me the total will be 88656.00 so my 72000 has now gone to 88656.00 I am now wondering if I done the right thing or should I have spoke to my creditors and come to some arrangement before I took out this Iva
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kallis3
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by kallis3 » Tue Aug 22, 2017 6:46 pm
Hi,

Don't forget you will have fees on top of your original debt, plus you will have saved a lot on interest from your creditors.
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Foggy
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by Foggy » Tue Aug 22, 2017 7:25 pm
During an IVA you always owe the full debt, plus fees and possible statutory interest --- usually less in total than you would be paying your creditors with their contractual interest. By my rough reckoning this would be £85k without the interest, so their figures are about right (if a tiny bit rich).

Now -- if you are wanting finish early the question is can you make a full and final offer of £X ...NOT a settlement, or "pay it off" : that is far more expensive !

£x is based on the term remaining multiplied by the monthly payment (plus 12 extra payments if there is equity in a property to be addressed. So, in your case, you would need to offer around £23000 -- maybe as low as £20,000
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Lisa Thomas
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by Lisa Thomas » Wed Aug 23, 2017 7:51 am
I think Foggy may have added extra zero's in his figures...!

Take a look here:

https://youtu.be/h4dozq9aGak

I expect you asked your IP the wrong question by asking for a settlement figure.
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Foggy
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by Foggy » Wed Aug 23, 2017 8:28 am
Lisa Thomas wrote:
I think Foggy may have added extra zero's in his figures...!

Take a look here:

https://youtu.be/h4dozq9aGak

I expect you asked your IP the wrong question by asking for a settlement figure.



18 months left at £1311, without equity.
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Michael Peoples
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by Michael Peoples » Wed Aug 23, 2017 9:08 am
You will be debt clear after five or six years which is unlikely if you tried to negotiate yourself. If you do not own a property or have no equity the IVA should close after five years even if creditors have not been repaid in full. If the IVA is extended then six or seven months should clear the balance of the debts.
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Lisa Thomas
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by Lisa Thomas » Wed Aug 23, 2017 2:58 pm
Foggy wrote:
Lisa Thomas wrote:
I think Foggy may have added extra zero's in his figures...!

Take a look here:

https://youtu.be/h4dozq9aGak

I expect you asked your IP the wrong question by asking for a settlement figure.



18 months left at £1311, without equity.


Yes I wouldn't offer £20,000 then!!
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kallis3
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by kallis3 » Wed Aug 23, 2017 3:12 pm
I think £20k sounds good to me!
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Lisa Thomas
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by Lisa Thomas » Thu Aug 24, 2017 8:49 am
I'm confused. Why would the poster offer to settle their IVA at £20k when they only have c£2 - £3k left to pay in contributions?

I must have missed something?
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Foggy
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by Foggy » Thu Aug 24, 2017 8:55 am
Lisa Thomas wrote:
I'm confused. Why would the poster offer to settle their IVA at £20k when they only have c£2 - £3k left to pay in contributions?

I must have missed something?


One of us has (and it could well be me!). As far as I can see the poster has 18 months left (assuming no equity to be addressed) and pays in excess of £1k a month. Where are you getting the figure of £2 - £3k from? What am I missing ?
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kallis3
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by kallis3 » Thu Aug 24, 2017 9:12 am
I agree with Foggy - OP has 18 months more payments to make.
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