Closing the IVA on payments to date

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Lisa Thomas
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by Lisa Thomas » Mon Jul 31, 2017 11:55 am
Almostfree wrote:
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?

BKY = Bankruptcy

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.

No creditors have to have at least 14 days notice of the meeting, so about 2 weeks (unless adjourned for some reason).

If it is accepted on paid to date, how long after that would I get a completion certificate?


Unfortunately some firms take up to 6 months, but it should on;y take a few weeks in reality.
Almostfree
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by Almostfree » Mon Jul 31, 2017 12:01 pm
Lisa Thomas wrote:
Almostfree wrote:
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?

BKY = Bankruptcy

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.

No creditors have to have at least 14 days notice of the meeting, so about 2 weeks (unless adjourned for some reason).

If it is accepted on paid to date, how long after that would I get a completion certificate?


Unfortunately some firms take up to 6 months, but it should on;y take a few weeks in reality.




Ahh ok. Thank you for your help.

Everyone has been so nice on here. I've felt like such a failure over this for the last 4 years. I hardly dare to believe that this could really be over soon and I can finally wipe the slate clean.
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Michael Peoples
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by Michael Peoples » Mon Jul 31, 2017 12:04 pm
You may be asked for the last wage slips to ensure all overtime etc has been addressed but for a full and final like yours this may not be the case. The finance/closure department will need to ensure that all the funds are distributed correctly, the bank account closed down, any property restrictions are lifted etc and they then pay out the final dividend.
Almostfree
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by Almostfree » Mon Jul 31, 2017 12:17 pm
Michael Peoples wrote:
You may be asked for the last wage slips to ensure all overtime etc has been addressed but for a full and final like yours this may not be the case. The finance/closure department will need to ensure that all the funds are distributed correctly, the bank account closed down, any property restrictions are lifted etc and they then pay out the final dividend.


I'll get my wage slips printed off then beforehand.

I don't own my home or have any property to my name so hopefully it will be quite straightforward then.
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Lisa Thomas
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by Lisa Thomas » Tue Aug 01, 2017 9:16 am
You are not a failure! You admitted you had a problem and took steps to sort out your debt.

You are on the road of recovery to a fresh slate.

Best of luck with it all and let us know how you get on?
Almostfree
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by Almostfree » Tue Aug 01, 2017 9:37 am
Lisa Thomas wrote:
You are not a failure! You admitted you had a problem and took steps to sort out your debt.

You are on the road of recovery to a fresh slate.

Best of luck with it all and let us know how you get on?


It certainly feels like it at times. I'm worried about getting a mortgage in the future (5 years away yet) and always being seen as a bad debtor.

I will of course update once I hear back from my IP.

Thank you :)
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kallis3
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by kallis3 » Tue Aug 01, 2017 10:12 am
You won't be a bad debtor forever! A lot of people have gone on to get mortgages and credit cards once they are free of any defaults.
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Foggy
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by Foggy » Tue Aug 01, 2017 11:16 am
You will be fine ... many of us go on to acquire new credit cards, cars, mortgages ... the whole shebang. But we do it with new found knowledge and all pretty darned hot on the finances by then :-)
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by Almostfree » Thu Aug 03, 2017 2:46 pm
So I have just heard from my IP.

They cannot finish the report until I have an estimate of any tax credits I may be entitled to while I am studying. They say that I could be entitled to enough to cover my IVA payments so it could continue to run. I'm really wary about this because the reason I'm even in the IVA is due to a tax credit overpayment that I couldn't afford to pay back. I'm terrified of being overpaid again and having an even bigger mess to sort out! Surely they would understand my hesitation in applying for tax credits again after all this? I don't even know if I'll be entitled to anything at all. Would I have to repay the overpayment anyway if I reapply even if it's included in my IVA? The IP couldn't tell me so I have to ring HMRC and I'm really worried about it.

They also say I owe extra due to a pay increase so they may also have to extend the IVA by another year! So I potentially have another 2 years to pay.

This is such a nightmare. I really think I should just make a full and final settlement offer. So what would be an acceptable offer at this point? My partner has just changed jobs (literally this week) and I am due to finish work on 15th September. My IVA was supposed to run until October 2018 (now October 2019) at £100 a month. Assuming 2 more years payments at £100 a month, would an offer of £1500 be likely to be accepted based on what they would save on IP fees over the next 2 years? What about my reasons? Is it enough to cite the stress and struggle of paying this for another 2 years whilst undertaking a nursing degree?

I'm getting so stressed out about all this. I just want it over so I can get on with my life.
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Foggy
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by Foggy » Thu Aug 03, 2017 3:41 pm
Two years at £100 a month means they are looking at getting £2400 back ---- £1500 mignt make it, but £2000 more likely ---- Stress and health are compelling reasons.
Almostfree
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by Almostfree » Thu Aug 03, 2017 3:50 pm
Foggy wrote:
Two years at £100 a month means they are looking at getting £2400 back ---- £1500 mignt make it, but £2000 more likely ---- Stress and health are compelling reasons.


I know but my parents can't afford any more than that.

Given its taken a month to get this far they will get at least 2 further monthly payments and the £1500 on top of that so £1700 in total. Should I present the offer like that?
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Foggy
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by Foggy » Thu Aug 03, 2017 4:10 pm
Almostfree wrote:
Foggy wrote:
Two years at £100 a month means they are looking at getting £2400 back ---- £1500 mignt make it, but £2000 more likely ---- Stress and health are compelling reasons.


I know but my parents can't afford any more than that.

Given its taken a month to get this far they will get at least 2 further monthly payments and the £1500 on top of that so £1700 in total. Should I present the offer like that?



Always worth discussing with your IP.
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Michael Peoples
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by Michael Peoples » Fri Aug 04, 2017 8:47 am
Your IP must put forward any proposal you ask for and they cannot hold it up because they do not like it. Send a letter in writing to the IP asking for the full and final offer to be put to creditors and point out that under the terms and conditions of the IVA this must be done within 21 days [double check your own T&Cs to confirm].
Almostfree
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by Almostfree » Fri Aug 04, 2017 9:42 am
Michael Peoples wrote:
Your IP must put forward any proposal you ask for and they cannot hold it up because they do not like it. Send a letter in writing to the IP asking for the full and final offer to be put to creditors and point out that under the terms and conditions of the IVA this must be done within 21 days [double check your own T&Cs to confirm].


Hi. I spoke to the IP and they have agreed to put the proposal forward. They have asked for a letter from myself, one from my dad, a copy of his ID and evidence that the money is available. I have downloaded the template letters Foggy provided in another thread and amended them accordingly. My dad is getting his statement and ID at the weekend and I will email all of it to the drafting department as advised by the IP (Moneyplus).
I have been reading quite a lot and did some research last night. If my offer is rejected I will have to keep up the monthly payments, and if I qualify for tax credits I will apply for these to cover the payments for the next year, with the hope that if my IVA does have to be extended then my dad will make an offer to pay it off then.
So I am feeling much better about the situation now. My IP said it won't hurt to make the offer, even if it is rejected, so they seem supportive of it. My 2 main creditors are Barclays and HMRC, and I've heard that HMRC don't like settlement offers as a general rule. They didn't vote at the original IVA proposal meeting so what is the likelihood they will vote against this variation? Also, both HMRC and Barclays are owed roughly the same amount, so is it a case of both must vote in favour for it to go through, or if HMRC don't vote and Barclays accept will this be sufficient for it to go through?
Sorry for all the questions.
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Foggy
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by Foggy » Fri Aug 04, 2017 9:59 am
The "yes" vote has to be 75%, by value, of those who actually vote --- as with the initial meeting, any that do not vote are bound by the outcome anyway.
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