I've been in an IVA for 40 months so far having had to pay back £27,936 originally. I have currently paid back £18,910 therefore have £9,026 left to pay.
I'm paying about £450 a month currently, my question is that having spoken at length with the IVA with my parents, they are happy to help me out with a settlement figure. It's somewhat awkward as I initially didn't inform of the IVA and they have been in Africa for the past two years. Having spoken to the IVA they don't seem overly keen to help with regard this situation and an exact figure, although suggested anything from about half.
I was considering paying in this coming month's payment and August's as the IVA firm suggested it would take 2-3 months to get to a meeting/approved. Therefore taking the debt down to about £8,100. Is a figure of around £5,000 a reasonable starting point to make an offer.
I don't own my own house so have no large equity and having struggled with this IVA for over 3 years I really want to use my Mother's help to pay back what is deemed suitable.
Any advice regards a settlement figure would be most appreciated.
Kind Regards.
When you say struggling, have you been managing in discomfort, or have you been making cuts to make ends meet or borrowing small amounts from friends to get by?
I usually don't recommend variations for people unless they have a problem, because unless your creditors feel that the IVA is in danger of failing they have little reason to agree to a further dividend reduction.
What dividend are your creditors receiving at the moment, and how much debt was there originally?
Hi theskeen - Liam is right in that creditors will want to see the benefit of them accepting the F&F from you. If the payments were tight and say needed dropping by the agreed 15% to take the pressure off this would still provide c£380 per month to creditors which would give them £7600. Your IP should still put forward your proposal to creditors if that is what you are now offering to see what they say - there may need to be a renegotiation on the final agreement but you won't know without trying. If your Mum is offering you the lump sum to alleviate the stress the ongoing IVA is causing you and expects it to be repaid monthly then you can also show the creditors that you will have far less disposable income per month due to the repayments to your Mum.
Let us know how you get on.
Regards,
Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.
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Thanks for the response. The estimated dividend is 53% looking through my paperwork. Up to the end of the year 2010 - I'd paid back 15.7k of which 7.3k had gone to the creditors. I've only really come up with the figure of around 5k as my IP seemed to suggest a figure of about half of the outstanding debt, which when I've paid the next two months will be just over 8k, when I spoke to him this morning.
As for my personal situation, last year I was earning 35k a year before being offered redundancy in July, I didn't accept it and have regretted it since mainly because of the worry of the IVA and subsequently moved into another role at the same company, paying substantially less - it's possible the redundancy will float its head again although unlikely I'll be offered it - as you can imagine though I'm extremely unhappy in my current working environment and have no motivation for the company after last year. I don't expect the creditors to care too much about this mind. We have from time to time borrowed from people on a monthly basis to pay certain things that always seem to hit us hard like car problems, rise in petrol/food and kids trips etc. Last year I was paying in £505 a month into the scheme, this year £451 and although it has dropped the salary has dropped by a bigger percentage.
Ultimately I just want to be able to take the chance my Mum can help me out with the payments.
Hi theskeen welcome to the forum,well done for getting this far with your iva it isnt easy is it.Theres no harm in putting a offer forward stating the reasons you have mentioned,i would include 2 or 3 payments as part of the offer to make it more appealing to creditors,ultimately you will need your IP to draught it for you to make it look good.Good luck and let us know how you get on.
Thanks MrBlueSky - if only it was outside eh!
It's certainly been a struggle, but I'm pleased to have got this far and it's made my debt an awful lot more manageable than previously when I was paying out to loans, credit cards etc.
I have said to the guys I will include July and August's payments in the letter to reduce the amount, will keep everyone informed and thanks for all the advice. I will give it a crack.
