Settlement

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mumof3
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by mumof3 » Fri Feb 01, 2019 9:27 am
We have only been in our IVA for a year. Do you think they would look at a settlement figure? My parents are willing to give us the money for this.
Also would you offer the full amount we have left to pay or would you offer a lower amount? Our contracted monthly payments would only add up to £7,200 as we pay quite a low monthly payment.
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Foggy
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by Foggy » Fri Feb 01, 2019 9:40 am
The low amount monthly does limit your wriggle room a little, but you can make an offer based on the payments remaining --- do not use the term "settlement" as this figure would be the full original debt, plus fees and interest. What you are making is a "full and final offer".

Assuming you rent your property ( if you own it there will be equity release to consider -- usually by adding 12 extra payments), a lump sum now will be saving the IP and the creditors a chunk in administrative fees over the next 4 years. So, if remaining payments are in the order of £7,200, you could offer £6k - £6.5k. Obviously the nearer to the full amount the more tasty the treat.
mumof3
Posts: 65
by mumof3 » Fri Feb 01, 2019 10:06 am
Hi foggy.
We own our own property so I added on an additional 12 months payments.

My parents would be taking out a loan to make the offer, they obviously don’t want to take the loan out if the offer isn’t going to be accepted so I’m not sure how we go about this.
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Foggy
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by Foggy » Fri Feb 01, 2019 10:30 am
mumof3 wrote:
Hi foggy.
We own our own property so I added on an additional 12 months payments.

My parents would be taking out a loan to make the offer, they obviously don’t want to take the loan out if the offer isn’t going to be accepted so I’m not sure how we go about this.


Some lenders will go through the formalities of granting a loan and give you the facility to draw the money if and when needed, within an agreed period. If you don't "cash the cheque", so to speak, you can just cancel.
mumof3
Posts: 65
by mumof3 » Fri Feb 01, 2019 1:14 pm
Thank you.
Is there a template anywhere which I can use to write to IP?
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Foggy
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by Foggy » Fri Feb 01, 2019 1:27 pm
mumof3 wrote:
Thank you.
Is there a template anywhere which I can use to write to IP?



https://www.iva.co.uk/letter6-f-and-f-offer-during-iva
mumof3
Posts: 65
by mumof3 » Fri Feb 01, 2019 1:50 pm
Thank you foggy! I’ve sent an email to get ball rolling. Offered £7,000 as don’t want to offer too low and they say no!
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Foggy
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by Foggy » Fri Feb 01, 2019 2:15 pm
mumof3 wrote:
Thank you foggy! I’ve sent an email to get ball rolling. Offered £7,000 as don’t want to offer too low and they say no!


Best of luck.
mumof3
Posts: 65
by mumof3 » Wed Feb 06, 2019 4:51 pm
Got a reply from IP.

I need to provide the following:

A written request from you to arrange a variation meeting with your creditors

A full explanation and reasons why the offer is being proposed

3rd party’s name and address

The amount of the offer being proposed

A redemption statement for your mortgage and any other loans secured against your property

Will your IVA contributions be continuing until the variation meeting has been held? If no further payments are to be made please provide and explanation why not.

I’ve just received a statement from mortgage people, do you think this will be sufficient? It has a redemption figure on it.
mumof3
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by mumof3 » Tue Feb 12, 2019 1:50 pm
Well I emailed everything across that was asked.
So not wait for the variation meeting to be sorted.

Wish me luck :)
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