Redundancy and settling IVA

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Nickibu82

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Post by Nickibu82 » Sat Apr 06, 2019 11:20 am
I'm about half way through my IVA. The original debt was around 30k and I pay £425 a month. I am considering taking redundancy which would be around 19k. I've worked out that if I carry on paying my IVA for another three years (will be 6 years in total plus 6 months where I had a break due to maternity) then I will pay another £17800. I'm wondering if I offer 16k and leave myself 3k to get by until I find a new job, are my creditors and the IP company likely to accept this? If they don't then how will the lump sum I pay affect my agreements? My IVA agreement states that they will take anything over over 6 months which would be about 10k. If I paid this and carried on paying my monthly fee for the next three years, I'd actually be paying more than my original debt. Would they reduce my payments or close the IVA when the original debt has been paid? Thanks in advance.

Foggy

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Post by Foggy » Sat Apr 06, 2019 11:26 am
They can take the £10k and the IVA will continue unchanged until such time as you pay the full original debt, plus fees and possible statutory interest.

However ,,, as this would be a voluntary redundancy --- you could OFFER to take it in order to make a full and final offer ( that amount based on payments left outstanding). So you tell creditors if thay accept such an offer you will apply for VR --- if they refuse you will remain in employment and the IVA will carry on as already agreed.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

Nickibu82

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Post by Nickibu82 » Sat Apr 06, 2019 11:45 am
Thank you. Is there a certain percentage rule as to how much creditors would accept as full and final payment? So if I offered 16k on the remaining (Im guessing around 20k with the fees) are they likely to accept?

Foggy

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Post by Foggy » Sat Apr 06, 2019 12:01 pm
There is no real "rule" in F&F offers .... you start at the payments outstanding ... in your case the £17,800, then, if you think it is feasible, you can round it down a little to reflect the savings they are going to make in admin as well as the "bird in the hand" premium. So, I would say that an offer of £16k would be looked at seriously --- don't forget .... in their eyes, you will be making a sacrifice too .... you do not have to take redundancy at this stage.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

Foggy

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Post by Foggy » Sat Apr 06, 2019 12:05 pm
On a seperate issue -- I notice that you posted the same question 4 times ( the duplicates have been removed) ---- were you getting an Error page and resending ??
Like this .......
General Error
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SQL
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My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

Nickibu82

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Joined: Sat Apr 06, 2019 11:12 am

Post by Nickibu82 » Sat Apr 06, 2019 12:06 pm
Yes, apologies. I didn't think it had posted as I was getting that error message so assumed my original post was too big or something.

Foggy

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Post by Foggy » Sat Apr 06, 2019 12:08 pm
Sat Apr 06, 2019 12:06 pmNickibu82 wrote:
Yes, apologies. I didn't think it had posted as I was getting that error message so assumed my original post was too big or something.
No need to apologise -- there seems to be a glitch on the forum. I was curious
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

Nickibu82

Posts: 4
Joined: Sat Apr 06, 2019 11:12 am

Post by Nickibu82 » Sat Apr 06, 2019 12:13 pm
Ah I see. Glad it's not just my user error 😁 thank you for the swift resposonses. I'm really hoping they do take the offer seriously as there's every possibility I'll be made redundant anyway after the voluntary scheme closes and I'll only get a couple grand if that happens.
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