Closing the IVA on payments to date

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Almostfree
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by Almostfree » Sat Jul 29, 2017 4:30 am
Hi. I'm coming up to my final year of my IVA. I've paid £100 a month, no payment breaks or anything. I gave my IP permission to claim any PPI (which i didnt think I had) and they got £1700 which went into my IVA. As of September my employment will end and I will start a nursing degree, so I called my IP to discuss my options as the payments will no longer be affordable. They suggested a variation meeting be arranged to close the IVA on payments to date but I'm worried the creditors won't agree and what will happen if It's rejected. I have 14 months left at £100 a month and don't own my home so no equity or anything. The IP said they can't make any guarantees but that there's a good chance it will be accepted at this point in the IVA. I don't want it to fail though so if they reject this would I need to offer a settlement figure?
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kallis3
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by kallis3 » Sat Jul 29, 2017 7:45 am
It sounds good to me and your IP company obviously think so as well.

Make no mention of a settlement - if anything it would be a full and final but say nothing at the moment. Where would the funds be coming from?
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Foggy
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by Foggy » Sat Jul 29, 2017 9:22 am
My IVA (well two interlocking IVA's with the now ex wife) was concluded on a F&F based on payments made to date half way through out terms. This was due to me becoming a single parent and my disposable income hitting the dirt. The creditors accepted. So it does happen :-)

Of course all circumstances are different, but it certainly helps to have the support of your IP, as you appear to have.
Almostfree
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by Almostfree » Sun Jul 30, 2017 4:52 pm
kallis3 wrote:
It sounds good to me and your IP company obviously think so as well.

Make no mention of a settlement - if anything it would be a full and final but say nothing at the moment. Where would the funds be coming from?


My mum and dad would pay it if it closed the IVA. They're retired though so I'm really hoping it doesn't come to that.

I guess I just have to wait and see for now. Thanks for replying :)
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kallis3
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by kallis3 » Sun Jul 30, 2017 5:00 pm
Fingers crossed - make no mention of a possible full and final payment at the moment.
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Lisa Thomas
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by Lisa Thomas » Mon Jul 31, 2017 8:46 am
Put the variaiton forward on basis of creditors accepting payments to date in F&F and closing IVA.

If rejected and you can't maintain the payments ask Mum and Dad if they will offer £1k to settle and put forward a second variation.
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Michael Peoples
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by Michael Peoples » Mon Jul 31, 2017 8:47 am
If creditors do reject the variation you can make the offer then as the variation meeting can also be adjourned. It looks like your IP is trying to get the best deal for you so at worst it may come down to a little bit of haggling at the time.
Almostfree
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by Almostfree » Mon Jul 31, 2017 9:03 am
Ok. I think my main worry was that they would petition for bankruptcy if they rejected. I just want to avoid failure at this point.
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Michael Peoples
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by Michael Peoples » Mon Jul 31, 2017 9:08 am
If the variation is rejected the IVA just reverts back to its original state. Creditors rarely ask for bankruptcy proceedings unless HMRC are a major creditor as it means the funds have to come from the IVA 'pot'. This means less for them so that particular route is not going to happen.
Almostfree
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by Almostfree » Mon Jul 31, 2017 9:19 am
I see. Well I'll keep my fingers crossed then and just hope this is all over by Christmas.
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kallis3
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by kallis3 » Mon Jul 31, 2017 10:57 am
Fingers crossed for you.
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Lisa Thomas
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by Lisa Thomas » Mon Jul 31, 2017 11:04 am
The IP could insert a resolution about BKY if creditors object but insist that they take this out.

Do not mention you have the F&f gift up your sleeve as if creditors get wind they will likely object to the payments to date variation and await the lump sum offer instead.

Only mention it if the variation is rejected.
Almostfree
Posts: 17
by Almostfree » Mon Jul 31, 2017 11:42 am
Lisa Thomas wrote:
The IP could insert a resolution about BKY if creditors object but insist that they take this out.

Do not mention you have the F&f gift up your sleeve as if creditors get wind they will likely object to the payments to date variation and await the lump sum offer instead.

Only mention it if the variation is rejected.


Sorry, BKY?

I haven't said anything about a settlement to my IP. I only talked to my parents about it a few days ago so there is no formal offer as yet. They specifically said they would only offer if the paid to date variation is rejected. My IP is drafting the variation report at the moment so I should hear back from them soon. As I understand it they have to give my creditors up to 4 weeks to decide.

If it is accepted on paid to date, how long after that would I get a completion certificate?
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Michael Peoples
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by Michael Peoples » Mon Jul 31, 2017 11:43 am
The certificate should follow within four to six weeks of the final meeting. In theory the variation could be challenged by a creditor so the IP has to wait until that period has elapsed and during this time the final finance checks will be carried out.
Almostfree
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by Almostfree » Mon Jul 31, 2017 11:47 am
Michael Peoples wrote:
The certificate should follow within four to six weeks of the final meeting. In theory the variation could be challenged by a creditor so the IP has to wait until that period has elapsed and during this time the final finance checks will be carried out.


Ok. WHat final checks do they need to do? Just so I can have everything ready if and when they need it. I know that they have already checked with the PPI team that all investigations have been completed.
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