Hi there. My thanks for your wonderful forum. I wonder if anyone would comment on this.
I am in an IVA with my husband. It has been running smoothly for just over 3 years (yes I am touching wood as I type!!) I got a new job last year with a significant pay rise and as a result we are now paying £700 a month instead of the original agreed amount of what I think was a round £450. That’s fair enough, with my pay rise we can afford the bigger payment and of course we should pay back what we can afford. Our IVA has just under 2 years to go, but we are in negative equity so we are likely to be paying for an extra year.
Last month my mother found out about our IVA (thanks to the Insolvency Register!!) Once she picked herself up from the floor she phoned me and I told her all about it. She has offered to put up the money for a full and final. I knew she would do this that’s one of the reasons I did not tell her about it (this is our mess and it’s up to us to dig our way out!) It would actually be a good idea as my husband has just returned to work after a bout of long term sickness (depression, he is fine now) but he nearly went on to half pay and I worry he may relapse. Our plan is for him to go part time once our IVA is finished but it would be nice if he could do it this year.
Anyway I got in touch with my case worker and asked her what we should offer. After reading some of the posts on this site I know the best chance of an offer being accepted is to offer the original agreed amount.
My case worker says our original agreed amount (including equity release) is £26,250. To date we have paid £15,270, that leaves £10,980. I am no mathematician but if we were to propose this surely it will be kicked into touch!! With our increased payment it is £700 x 34 months = £23,800!!!! Way more than £10,980!
I am aware that creditors prefer guaranteed money over maybe money, but both my husband and I have pretty rock steady jobs and if I was a creditor I think I would take the risk!!! What do people think?
You're being extremely sensible about this, and I'm sure that your creditors will appreciate your attitude. A compromise between the two amounts would be a more reasonable offer, and shows that you are serious about repaying as much as you can afford to.
Also remember to mention things like your husband's situation to give your creditors a broader picture, and show that your current level of contributions is not guaranteed.
Thanks for the reply. I don't like the idea of dangling my husband in front of them but I hear what you mean. The majority of our debts are owned ( is that the right terminology?) by maxrecovery. I presume that means they will be my main creditor at the meeting?
Yes, that's right - remember it's measured by the value of the debts though, not by number.
Things have shifted around a bit at Max in the last year, so unless you happen to be in an IVA with Varden Nuttall I won't know the team responsible for voting on your case. The people I've dealt with have always been extremely reasonable though, and very realistic.
I am enjoying life Liamjames [:)] 3 years ago I thought we were going to lose everything. I was not so happy then!! Thank god for this IVA! Right Max Recovery buy debts off big lenders at a discounted rate ( I read 10p in the £1.00) If that were the case then they stand to make a good profit from our debts. Of course it does not change the fact they also stand a very good chance of making more profit by sitting tight. I think we should go for it. At the moment I have to go mash some potatoes!
My own view is that if you are affording payments of £700 per month now, following your last annual review, then this should set the basis for your offer - however this will need to be also based on what your Mum can afford to lend you.
I believe that Max would look favourably on a lower offer if your husband were to be unable to return to work, but as that has not yet happened you may find that they dig in for the full amount. Chat with your IP to see what they recommend.
Many thanks Melanie. My hubby is back to his usual dynamic self. His view is to keep paying what we can for the remaining 34 months, it was us that got ourselves into the mess so it's up to us to deal with it, not my mother. I mostly agree with him. It is that aweful register I hate!! Anyone if they want can check our names and get all our details! Surely that information should only be available to interested parties? My mother has had a ball going through her address book checking on everyone she knows, has known, plus anyone else she can think of! (that's my mother for you!) I know she has savings but I have no idea how much, and I would never ask! I know one thing though! We won't be asking her for £23,800!! Ho hum tiddly dum it's a thinker this one. I will get in touch with our IP and see what he thinks. Not till after the weekend though. Again my thanks for those who replied
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk