Looking a little bit of help. I have had my IVA for 6 months now and paying in variable additional overtime payments as agreed in the proposal. For clarity, my situation is as follows:
63k of debts (99% negative equity on a mortgage - house is now gone obviously)
Circa £450 p/month
Average £200 p/month of overtime - it varies wildly
5.5 years in the IVA left to go!!
So, rough calculations on payback is £46,800. I have no doubt the actual figure will be higher than this.
I understand the IVA isn't a consolidation loan of sorts and that that 63k is plus interest and fees etc. Saying that, it is fixed at 6 year agreement and I'm wondering if a potential Court payout in relation to my employment will actually help me...
So, my employer has to pay back unpaid holiday overtime that should have been factored into pay over the past 20 years as set out by the Employment Appeal Tribunal. The amount to be awarded is yet to be decided, as is how it will be paid e.g. backpay in a lump sum, extra monies every month going forward etc. Assuming it will be paid as a lump sum ,and for example it was a figure of £10k net, I will of course let my IP know and they will decide if I'm entitled to any of it (100% windfall, 50/50 rule on overtime etc)
My question is given that is 10k into the pot, will this assist in completing my IVA quicker? I had asked my IP about overtime and if that I had the luxury to work a lot of it, if it would speed up the process of payback. Needless to say, the answer was less than clear.
I've read that you won't pay back more that 100p in the £ for the debt but I'm keen and industrious enough that if I could work towards paying it off sooner then I absolutely would
IvaIn2018 wrote:8%!! Thats a crazy amount! Would a F&F offer half through the agreement - 3 years - mean that there are 3 years of interest payments to be made good as well as the outstanding amount? Or would there be an adjustment?
A F&F offer takes no heed of interest --- that only kicks in if you are "settling", i.e paying the full debt, fees and interest. A full and final is based purely on the amount the creditors woudl be expecting to see if the arrangemenbt ran to term (monthly payment multiplied by the number of months remaining).
One final question which I realise is premature but will ask anyway.
If for example in 1 year's time, I will have completed 18 months payments with 54 months left to run and I DID win that payout claim, then would this be an unreasonable proposition...
Monies paid in to then would be:
Monthlies: 450 x 18 - 8100
OT contribution (average) 200 x 18 - 3600
Claim payout - 10000
Would amount to 21700.
If family provided, say 25k as a F&F settlement at that stage (this is all hypothetical), then that would be 46,700 in total.
Given that the total debt was 63k, this would be a 74.6p return in the pound (before fees, interest etc). That is the same than what they would have achieved if the IVA ran it's course.
I'm basing the calculation of the total payment of the IVA being 450 x 72 and then the OT contribution if 200 x 72 = 46,800
Does that sound like a good proposal? Assuming the payout is 10k etc...
An offer of £25k may be considered attractive enough for creditors to accept it.
The closer you are to £35k the more likely creditors are to accept it.
Best case scenario then is that I receive 50% of it, as it is overtime based ( fingers crossed!!) and the other is paid into the IVA. That way I can put it into savings
Thanks for the reply
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