My wife and I entered into an IVA with £49,000 worth of debt, with initial projections we were due to repay £19,500. As our income has increased we have currently paid back £18,000 and have two years remaining with monthly payments of £350. We have also just finished a 9 month break due to my wife being on maternity and a roof repair costing £2,500. Our current final payment is due August 2023 plus either 12 additional payments or equity release. House currently worth around £195,000 with a mortgage of £142,000 (don't have exact figure to hand but around there give or take a couple of hundred).
We have just had some unexpected news that my wife is pregnant again with twins. We will be able to continue to make our payments at the current level up until April which will mean we have paid back around £21,000. At this point our predicted surplus based on increased childcare would be around £30 a month. My dad has offered me £1,500 to make a 'full and final' offer in April, we don't have access to anymore money but I am concerned it is not enough and will be rejected.
Do creditors take into account the amount you have paid back in total or just the 'full and final' offer?
Also if they are not happy with the amount offered do they come back with a counter offer or do they just fail the IVA?
Is there anything else we could do to end the IVA successfully or stop it from failing?
Creditors look at the whole picture and past extra payments can only help. By April they will have got what they signed up for, at least and anything more will be a bonus.
You have ( including a 12 month extension in lieu of equity ) 36 months remaining at £350, so creditors are expecting around £12.6k more from you --- and offer of £1,500 wouldn't touch the sides. However, all is not lost...
I became a single parent literally halfway through my IVA, paying £460 a month at the time and my change in circumstances meant that I was unable to afford anything in the way of IVA payments going forward. However, thanks to another part time job I had already hit the initially projected target of 32 pence in the pound. I put in a full and final offer based on 'payments made to date' -- basically asking creditors to call it quits. Although, under the terms of my IVA they were expecting another 30 payments of £460 ( £13,800 ), they agreed to end the IVA successfully, there and then. So, it can happen with the help of a sympathetic IP !
In any event the arrival of twins will completely alter your I&E and your affordable amount will decrease substantially anyway, so they will, in the end, assuming you carried on to the end, get much less of that 'bonus'. Your predicted £30 a month would not sustain the arrangement, so it would be very much a 'do or die' move. Your dad's kind offer would help to sweeten the pot, I am sure.
Have a chat with your IVA provider. Good luck.
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