Calculate final figure

[DaphneDebt]

Hi - quick query.

I've been given a closure figure from Payplan of £4,600. My mum has offered £4,000 in f&f to close the IVA. I have no equity in property.

I've realised this figure only takes payments to month 60 not 72. Do you think this offer would be accepted or should we have offered more?

Thanks

[Foggy]

If you have no equity and, assuming the term wasn't extended at the outset, there should only be 60 payments due, not 72.

Don't forget that the creditors and IP will be making savings in administration over the rest of the term, so the F&F can be reduced slightly to reflect that --- there is also the "bird in the hand" factor, making a lump sum now more attractive than a dribble of payments over years to come.

[DaphneDebt]

Thanks Foggy - can I also ask about property valuations:

I own 2 properties and I was told by Payplan that a Zoopla valuation would be suitable. Zoopla gives me a realistic figure for one property but not the other so I have found another online AVM for that property.

The problem I have is I can't get a single AVM to give me a realistic figure on both properties. I'd rather not have to coordinate a house viewing with the two sets of tenants as I'd like this sorting asap.

Do you think they would question the different sources for the valuations?

Thanks

[Foggy]

They might --- but the proposal merely says it wants valuations, it doesn't specify a source.

[DaphneDebt]

Stupid question:

How will I know if the term of my IVA was extended at outset from 60 to 72?

All I can recall are mentions that this might be a possibility at the end of the 5 years.

My end of yr 4 review is due in 10 days and I've been asked to provide a valuation on my property.

Thanks

[Foggy]

If it was extended at the outset this should have been mentioned in the Chairman's Report (minutes of the initial meeting), which you should have been sent. Usually the initial term is 5 years which is often extended to 6 in regard to equity. If one of your creditors was NRAM (Northern Rock as was) the initial term is often set at 6 years, which is also extended to 7 regarding equity.