My IVA has been on hold for a number of months due to an increase in the expenses for my medical condition, leaving me unable to make minimum payments. My payments are due to recommence next month and I've been under a great deal of stress trying to work out what to do. If I can't start paying again, I'll default on my IVA and be in an even worse situation.
My best friend has recently come into some money and because I supported them in the past with their own health, they've said that they might be willing to settle my IVA early. However, he's not sure how much he can afford and I was wondering if there's any point trying to negotiate a settlement sum less than my balance, or will Freeman Jones only accept a full settlement of my outstanding debt?
Hopefully someone can advise, especially if it's a FJ representative!
A full and final offer ( not a 'settlement') is based on the remaining payments, not the outstanding debt. Multiply the number of remaining payments by the current repayment amount (before the break) -- add 12 if you are a home owner. Thta is the base-line figure, which you can also slightly round down, depending on the time saved ( less admin costs for running the IVA).
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Wed Aug 21, 2019 2:46 pmFoggy wrote:
A full and final offer ( not a 'settlement') is based on the remaining payments, not the outstanding debt. Multiply the number of remaining payments by the current repayment amount (before the break) -- add 12 if you are a home owner. Thta is the base-line figure, which you can also slightly round down, depending on the time saved ( less admin costs for running the IVA).
So the part in my paperwork that estimates what I will have paid by the time my IVA ends is the figure I should be looking at, minus what I've already paid?
Wed Aug 21, 2019 2:46 pmFoggy wrote:
A full and final offer ( not a 'settlement') is based on the remaining payments, not the outstanding debt. Multiply the number of remaining payments by the current repayment amount (before the break) -- add 12 if you are a home owner. Thta is the base-line figure, which you can also slightly round down, depending on the time saved ( less admin costs for running the IVA).
So the part in my paperwork that estimates what I will have paid by the time my IVA ends is the figure I should be looking at, minus what I've already paid?
Not quite -- because that would ignore any changes in payment or any extra payments ( overtime etc) you might have made. The offer is based upon what the creditors will be getting, from now, if you paid all payments as agreed -- so payments left, at the current agreed monthly rate.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Wed Aug 21, 2019 2:46 pmFoggy wrote:
A full and final offer ( not a 'settlement') is based on the remaining payments, not the outstanding debt. Multiply the number of remaining payments by the current repayment amount (before the break) -- add 12 if you are a home owner. Thta is the base-line figure, which you can also slightly round down, depending on the time saved ( less admin costs for running the IVA).
So the part in my paperwork that estimates what I will have paid by the time my IVA ends is the figure I should be looking at, minus what I've already paid?
Not quite -- because that would ignore any changes in payment or any extra payments ( overtime etc) you might have made. The offer is based upon what the creditors will be getting, from now, if you paid all payments as agreed -- so payments left, at the current agreed monthly rate.
I see what you mean. I should have specified that my payments have been exactly the same since my IVA started so there's been no variation. Thanks for your input, that's hugely helpful, totally answers my question, and was a far better result than I was expecting!
Remember that creditors will still have to accept the offer ( and they can be funny creatures). So make a case that it is in their interests to accept --- based on your reduced circumstances, failing health, etc., a bird in the hand now is, potentially, worth more than those mythical birds in the bush!
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
How long have you been in the IVA, what were your payments supposed to be and how much have you paid into the IVA to date?
Options:
1. Explain current circumstances as being unable to continue paying contributions - ask creditors to accept payments to date in settlement to finish the IVA early
2. Per above but make a lump sum offer to persuade creditors to accept the early closure
3. Recalculate reduced contributions with your IP based on change in circumstances and make lump sum offer based on remaining contributions at lower rate.
4. Make lump sum offer based on remaining balance based on original contributions figure remaining
Thanks for the post. The first thing to say is please do speak to us about this - we are here to help you find a way through this and remove as much stress as we can.
Clearly, based on your post, I don't have details of your IVA (like how long you've been on it, or how much you've paid in), but if your health means you can't afford to make any further payments then your creditors may accept a variation to bring your agreement to an early end.
A Full & Final may also be an option - what matters here is what your creditors will accept (it isn't down to us). They will weigh up getting a lump sum now v the remaining payments that you might be able to make into your IVA and decide based on that.
To advise you properly we will need to speak to you, to understand how you think your income and expenditure is going to look over the coming months, and to understand your health prognosis. We can then chat through the various options with you. If you drop me an email to ian.williams at FreemanJones.com and I will arrange a call from one of our Extra Support Team. Hope that helps, Ian
