Is it likely an offer of £4000 will be accepted? How much if this would go to the IVA company and how much to creditors?
Does a modification in my contract stating "no variation meeting called in first 24 months which will lower the dividend available" apply to lump sum payments? And if I can't afford the £100 a month 9 months in will my IVA fail?
You could ask that they remove the modification to allow a lower offer -- but I wouldn't hold out much hope as it ia obviously a creditor with the voting power who got this put in in the first place ... but, maybe, they will change their minds.
If you cannot pay going forward the IVA will fail.
How much were your total debts ? Do you have any assets ?
amie wrote:Total debts were £24,000 and I have no assets
Ah -- too much debt -- if it was less than £20k I was thinking a Debt Relief Order would have been better, if you could have got the disposable income below £50 per month.
Is there any reason you rejected bankruptcy ?
But my circumstances have changed which wasn't foreseen 9 months ago meaning my budget is much tighter and finding the £100 is going to be extremely difficult. I'm currently at my 1 year review when this will all be processed officially and I've been a bit worried/stressed which is why my parents have offered the lump sum but I don't think they will have the whole £6300 and I don't have anything myself right now to top it up
amie wrote:I did read one article which said sometimes creditors accept lower amounts in a lump sum as they're getting the money now instead of over 6 years?
They often do accept lower lump sums, to get money up front. They also save a bit on administration over the years. However, most do not have that modification which basically stops you making a lower offer. You need to see if they will agree to take that modification back out.
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