creditors

[Lisa2009]

As i am hoping to offer a full and final settlement to end my iva early, is it possible or even allowed to contact the creditors and ask them if my offer is likely to be accepted? That way i know if i am wasting my time or not

[Storm]

What are your IP's thoughts ???

[Lisa2009]

Have never spoke to the man as "he doesnt take calls"
I have however, finally spoke to somebody else who had my figures in front of her. I explaned that i had an offer in principle to raie enough money to pay off my next 2 years iva contributions plus the 15000 equity(only stated as estimate on proposal)
I also explained that my marriage has run into great difficulty because of the iva and that the increasing interest rates are starting to make us struggle. I would rather not go down the road of reduced iva payments because i want to givemy creditors back as much as possible....its only fair.
Anyway, the lady i spoke to said this seems like a fair and reasonable offer and advised me to get a firm remortgage offer. But as i said she wasnt my ip. Do i take her word for it that its a good offer?
The good thing with this offer is that its a fixed rate(interest only) for 2 years which will leave us slightly better off each month therefore relieving some of the stress.

[MelanieGiles]

You should not contact your creditors directly, and I would be suprised if you would find anyone prepared to talk to you to be frank. Or anyone with the ability to make a decision.

Depending upon this lady's level in the food chain of your IP firm - it is impossible to tell whether the IP will put the offer forward.

Nothing like the horse's mouth when you want a decision, and to be quite frank I am getting fed up of reading on this forum that members of my profession "do not take calls".

If the offer is acceptable, you will need to get a firm offer of re-mortgage before the IP will put this to creditors.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Lisa2009]

If you remember Melanie, you told me how to find the email address for my ip. I emailed him and the lady that read it actually phoned me to discuss it. Im just a little confused and dont really know which way to turn. If you were my ip, would you think it was a reasonable offer under the circumstances?

[Lisa2009]

Sorry i know i ramble on a little

[MelanieGiles]

I cannot say without knowing the basis of your original IVA - amount of monthly payment, IP fees, dividend pledged, did you have a final year equity release clause, value of property and outstanding mortgage.

Post more information and I'll try to help. And what did the lady who answered your IP's e-mail have to say about the offer?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Lisa2009]

original debt was around 60000, 16 monthly payments of £205, so far 20 monthly payments of £157 Fees for the 5 years £8225 estiamted divident to creditors is 28% and yes there is a 4th year equity clause..
Interest rises are causng us to struggle, i was told that i could have a variation meeting if things got too tight and have monthly contributions reduced but that would mean creditors get less.
My marriage is under huge strain because of the iva and the struggle juggling things to enable to mortgage still to be paid.
Offer i had was for £17000 to give the next 2 years of payments and 15000 from euity., Which would still give the crditors the 28%
At a push could probably raise slightly more but wouldnt leave us that much better off each month. It would be very doubtful that we would be able to release much more in year 4 because of the affordablility factor.

[Lisa2009]

sorry there is also a creditor that is only going to get 3% as it was a very small debt.
Please advise me, based on your exerience and knowledge, is my offer reasonable and if not, what would be?

[MelanieGiles]

Struggling to understand all this sorry - what are your monthly payments and how many have you paid. And what do you mean about a creditor only getting 3%.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Lisa2009]

Sorry.......
ok paperwork in front of me now
I made 16 payments of £205 then after that it was reduced to £157 (which i have made 20 payments of)
total debt £60000
Nominee fees £2500
Supervisor fees £4500
VAT £1225
Ammount available for creditors £16941
Estimated dividend to unsecred creditors 28%
Estimated dividend to creditors excluing equity 3%

I hope thats a bit easier to understand

[Lisa2009]

Oh and the £15000 equity (estimated) is taken into account in all that

[Lisa2009]

Does all this make your head hurt? It does mine

[MelanieGiles]

I still do not understand the 3% thingy! What on earth is this???

Apart from this your offer does seem reasonable, and I would put it forward on the grounds that you are suffering severe hardship now.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Lisa2009]

thank you for your reply
I trust your judgement as im sure everybody else on this forum does
As for the 3% thingy...well your guess is as good as mine, i always assumed it was to the lowest creditor whos debt was only about £90