I have an IVA which I am in month 21 (paid 19k to date).
My nephew has offered to obtain a loan to clear the IVA and I’m not quite sure best to progress with his offer.
My monthly payments are £700 and would have 29 payments left. I have arrears of 1800 so calculating all of this comes to £22,100.
I have a property which at the time of my IVA has less than £5k (Valuation £183k - Mortgage £139k (still this figure as interest only mortgage) + Secured Loan £12k (now approx 10k).
In respect of suggesting a F&F, would £20k be attractive to creditors (my dividend was 31p / £).
Also I understand that my IP will want to see the funds available - could this be with an agreement in principle and importantly, how do I present this being provided/loaned by a family member.
In terms of repayment I would make the monthly payment to my relative and would later remortgage once in a position to do so.
Thanks in advance.
Assuming you can convince the creditors/Supervisor that you don't have sufficient equity for an extension to apply then I would say £20k is very generous. I would even suggest you might want to reduce it a little, if the balance to pay is c£21k.
Your nephew will probably need to provide a copy of their bank certificate to show they have the funds.
Given the size of the money it would be in your nephew's interest to get a charge on your property to give them some comfort, albeit I not there is little equity at present.
Alternatively it will need to be treated as a gift.
So can the offer be presented as a loan to my IP? Unsure if this would be frowned on ie I would be now repaying my nephew.
I should have stated that my overall debt was approx £89k - the £21k ‘offer’ was based on my IVA payments up to month 60.
I think this part is a tad catch 22 but my nephews concern was if he was to secure the loan - but then my offer was declined - he would have taken the loan for no reason ...
Don't say it is a loan - just say that the money won't be available if the offer is not acceptable.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
So will the IP be happy with a letter highlighting the offer to settle at X amount without seeing a copy of the funds?
Confusing to write but from just querying if my IP would want to see the funds (eg screenshot from banking app) - I have seen a letter that has been devised but curious if this would be suffice.
To be clear --- the IP isn't overly concerned if the donor gets a loan to fund it -- that is their business. But it has to be presented to him or her as a gift to you. After the IVA has been completed the IP will have no interest if you then decide to repay the gift out of the goodness of your heart.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I would add a paragraph to the effect that the sum offered is for the purposes of a full and final only, and, if the offer is refused the money will be retained by the donor and will not be available to creditors. Some people also stipulate that any regular payments after a given date will be deducted from the lump sum.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I would not even think about allowing my nephew to take a loan out for me. Could you not consider paying the remaining payments yourself? They might want access to credit in the future themselves such as a car or a mortgage and the loan they took out for you may prevent this.
Without sounding harsh, IF the reason for your IVA was general overspending or some other event that could have been better controlled by you, could you genuinely say that won't happen again which would risk his credit if you default paying him?
Just advising you to take a step back to think again before going down this route.
A very generous nephew ... I would ensure it is all written down somewhere between you when it is agreed so that should anything happen to you, your nephew receives his money back from the estate (sorry for being morbid).
Good luck with the offer ..let us know how it goes
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
Anyone know what information PAYPLAN ask for as part of the settlement process ? I have never had to provide Bank Statements at review periods - are these requested?
Generally the provider will need proof of the existence of the funds as well as the identity of the donor -- this is for money laundering regulation purposes as well as satisfying him or herself as to the availability of the funds before calling a variation meeting.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thanks - My father has a remortgage agreed in principle (ready to access and has until June to take up the deal). He will not accept the funds/deal until the offer is approved - how will this work when presenting the offer? A screen shot of the remortgage offer suffice?
On the point of PAYPLAN or any other IPs re settlement - Bank statements?
A screen shot should suffice -- but, at the end of the day , it is down to the individual provider concerned. If they have not asked for bank statements thus far I doubt they will now -- but, they are entitled to ask at any time, so be prepared. There will be a final review before completion, but this is more to check income in the year before the last payment, rather than expenditure and payslips / P60s do that job.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
