Hi
I have a proposal which is going to the creditors at the end of this month. I also asked my IP what would happen if they didn't approve my proposal and still decided to take voluntary leave. I have offered 13k and my debt is just under 12k so I'm hoping this will be attractive enough to be accepted. However, apparently, if I don't get accepted and I still decide to take VR then they would take the lump sum which would be 10k and then I'd still have to pay a monthly fee for the 2 years and then look at equity release even though that means I would be overpaying by thousands. I just assumed if they took the 10k then I'd only have the remainder to pay plus fees or whatever and when the balance is paid, the IVA would finish earlier. Surely it can't be correct that I could potentially be overpaying by thousands?? Thanks
With an original debt of £12k you would be looking at fees of around £3 - 3.5k and statutory interest of 8% p.a on the reducing balance. The IVA would stop when this figure was achieved.
They should actually take the lump sum redundancy compensation less the equivalent of 6 months income (you need that to live on while seeking work).
Your offer is very generous, so I can't see this becoming an issue.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thank you. That's what I thought. My IP replied that I would in fact be liable to pay more than the original debt if I took the VL without the f&f being accepted. The original debt was 30k but I've got that down to just under 12k in three years. It would be 10k that they would take as that would leave me with 6 months salary and if they took the 10k then it would only be (roughly on your figures) no more than 4k left to pay which I would do in 10 months. They said I would have to make payments for the remainder of the IVA agreement period. If I was carrying on and got the same salary straight away so was paying the same amount, would be over paying by thousands and thousands. I thought this sounded incorrect.
Mon Apr 29, 2019 6:30 pmNickibu82 wrote:
Thank you. That's what I thought. My IP replied that I would in fact be liable to pay more than the original debt if I took the VL without the f&f being accepted. The original debt was 30k but I've got that down to just under 12k in three years. It would be 10k that they would take as that would leave me with 6 months salary and if they took the 10k then it would only be (roughly on your figures) no more than 4k left to pay which I would do in 10 months. They said I would have to make payments for the remainder of the IVA agreement period. If I was carrying on and got the same salary straight away so was paying the same amount, would be over paying by thousands and thousands. I thought this sounded incorrect.
Ah .. apologies -- I thought your original debt was £12k. Re-working with £30k -- to pay up in full would take in the region of £6.5k in fees and disbursements and interest of around £6k --- so to hit early closure you would need to have paid in around £42,500.
On your figures you have paid in £18k in payments, add to that the £10k redundancy and you still have around £14,500 until the magic figure is achieved. So, yes, it looks like you would have to continue to term.
What you have offered is a Full and Final based on payments remaining --- which are usually accepted -- and, again, your offer is generous. I would hope it is accepted --- indeed I have seen much lower offers get through.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
