Completion of IVA via selling my property.

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IVAconfused75
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by IVAconfused75 » Wed Sep 20, 2017 11:10 am
I have a year left of IVA and I would like to complete it by selling my home.
The balance + the IVA + what my house is worth, is coming up short of £10,000.
My question is, can I write to my creditors a letter of a final settlement less of £10,000, whilst I'm in a IVA, or does it have to go via my practioners?
I am with Payplan and at present, they aren't always helpful when I speak to them.
My IVA started at £24,00 with the 2 creditors and Payplan says that next year, in my 6th year, I will have paid £12,000, but will have to pay a further £24k+, because I can't remortgage, if I wanted to get out of paying for a 7th year.
A: I'm just after some advice, the best way to go about this.

B: If my creditors reject this final settlement, am I penalised in anyway.

C: How does this affect, if at all my relationship with Payplan? Will they be difficult ( for instance, if you packed up your IVA early, they wouldn't get their full quota of interest for each year) or make the IVA going forward whatever happens very hostile or demand extra payments etc...

I'm sorry if this sounds a bit odd, but I'm just concerned that if I don't do everything as it's supposed to be set out over the years, I could end up with extra stress in this IVA.
In short, this IVA is a lot of stress on my health and if I can get out of it asap, I would be a lot happier.

Thanks in advance.
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Foggy
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by Foggy » Wed Sep 20, 2017 11:38 am
If you cannot remortgage the IVA is extended by 12 months. You can make a full and final offer of the remaining months ( incuding that 12) multiplied by your current monthly amount. You can fund this offer from the sale of your house BUT you need to make it clear that you would be willing to sell ONLY for funding the offer --- if they do not accept the offer you will not sell and the IVA will continue as currently agreed. If you sell without such an agreement in place they will take the proceeds and the IVA will continue.

Payplan will not worry about early settlement -- they get their fees anyway and have to work less for it!

Why a 7th year ? Was your IVA a 6 year plan to start with (they are normally 5)?

Payplan will not get difficult over the offer, but, I am afraid, they are always less than helpful these days and it could take 6 months to arrange (most firms would do it in 2, but not Payplan). Make sure that you also specify that the offer amount will reduce by the amounts of payments made after making the offer.
IVAconfused75
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by IVAconfused75 » Wed Sep 20, 2017 12:27 pm
That is what I don't understand. I was told it would be 6 years, so I was under the impression it would finish next April(6th year), but according to Payplan, it would only finish then with a lump sum or else another 12 payments into 2019, all because my house isn't worth anything to be able to remortgage. I do feel penalised and that is can't be right or standard outcome.
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Foggy
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by Foggy » Wed Sep 20, 2017 12:43 pm
You should only get the house involved if there is more than £5,000 equity. Have a read of your proposal. The equity release provisions will be explained there.
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Michael Peoples
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by Michael Peoples » Wed Sep 20, 2017 2:14 pm
This does sound strange. If you have equity then the IVA is extended and that is that. If you do not have equity the IVA completes. Do not sell your house as they will grab everything and leave you nothing. It may be worth trying to settle the IVA as a full and final and then sell the house if that is what you want.
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Lisa Thomas
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by Lisa Thomas » Thu Sep 21, 2017 9:02 am
Why are you looking to sell your house having been in an IVA for 5 years in an effort to no doubt try and keep it?
IVAconfused75
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by IVAconfused75 » Fri Sep 22, 2017 12:24 pm
Hi.
After speaking to an IP, they've told me if I can settle the amount needed, which is £3k, then the other £12k would be written off. If I sell my home, I would have to pay the full £24k + 8% interest.
When I received the original email regarding this, it wasn't worded simply like that, which is where I thought I would have to pay double, so to speak.
Now i have a correct explanation, as regards to selling up, my health is variable and I told Payplan this at the start, which was the main reason I ended up in an IVA. After checking the report back from the courts, this is not mentioned. When I told my IP yesterday about my poor health of 11yrs, her whole attitude changed and is now putting it into my file, as I would like to raise the £3k via family and get out of this IVA.
I would like to move in with my partner, as where he lives, the level of hospital care is better for my condition.
As I thought I would owe them an extra £24k, that's why I was under the impression that my home was the only option to raise that amount.
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Michael Peoples
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by Michael Peoples » Fri Sep 22, 2017 1:03 pm
Good result and hopefully you get your IVA closed down soon.
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Lisa Thomas
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by Lisa Thomas » Fri Sep 22, 2017 1:20 pm
The key is what question you asked. Settlement is different from full and final offer.

Hopefully you can get the £3k together instead of selling the house.
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kallis3
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by kallis3 » Fri Sep 22, 2017 1:21 pm
Good luck from me as well.
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Foggy
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by Foggy » Fri Sep 22, 2017 3:03 pm
Good luck. As Lisa said, it's all in the wording of the question.
IVAconfused75
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by IVAconfused75 » Tue Oct 17, 2017 7:57 pm
So I have managed to raise the proposed amount needed to put forward as a settlement from a 3rd party.
Since then, I haven't been able to get in touch with my IP whether they have received my letter and my 3rd parties letter of authority.
Meanwhile, they have managed to write to me saying my agreement will fail, as I haven't paid the agreed monthly amount.
Before I informed them of a settlement, I contacted them that my wages had decreased due to less hrs health wise.
My IP emailed me to adjust my payments
at a lesser amount going forward, which I did last month.
So this month, the letter of not paying enough into my arrangement came. I emailed my IP; no reply. Left phone messages, held onto the AS for 30mins. 2 separate rounds of this; no return call back(this was last week. Also when I sent my F and F letters)
I did mention on here in a previous thread if my debt management company would become un contactable or awkward if I tried to settle my agreement earlier.
After a week, I don't know if my plan has failed or if they've received my FFs, so not sure what to do next, as this is worrying me and my 3rd party wants to know what's happening too.
Can anyone help?
IVAconfused75
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by IVAconfused75 » Tue Oct 17, 2017 8:03 pm
Sorry if I'm getting my full and final offer/settlement mixed up.
Basically, as I mentioned previously. I've written to my IP that a 3rd party will pay the £3k, which I was told would be considered to settle my IVA, subject to an agreement via their meeting.
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Foggy
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by Foggy » Tue Oct 17, 2017 8:11 pm
Email the IP direct, or post recorded delivery.
IVAconfused75
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by IVAconfused75 » Tue Oct 17, 2017 9:18 pm
Hi.
I've done those things.
My IP they've given me now isn't very responsive. This is the 5th IP I've had. They seem to start off nice and helpful and then become less responsive and unnecessarily short towards the end of the IVA My letter was specifically addressed to her.
The last time she didn't reply to me, sometime last year, I was told 'we have a lot of clients to deal with and it can get busy, so it could be a couple of weeks before you get an answer'
Not very helpful in this case or my problem, if I'm being honest.
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