hi guys, i need some advise iam only 2 payments into my iva 58 still to go, after being in a dmp for 2 years and getting no where, my payments are £250 per month my problem is that i work in the community and need a car to do my job, my current car is 13 years old and is about to die, my only way to finance another car is to lease it through my employer this will reduce my disposable income by approx £125 per month making my iva payment impossible, my question is do you think it would be possible to make a f&f offer to settle my iva, a relative has kindly offered to make an offer of payment for the full amount of the outstanding balance of the iva which is £14.500, if this cant be done then i think my iva might fail and i could end up going bankrupt the thought of this terrifies me.
Did you discuss this during your IVA planning that you would need a new car at all ? Some IP's can look at this prior to setting up your proposal and take this into consideration.
I would say that any money paid in to date would probably just go towards the IP fees, and not towards the creditors.
Also, until the IVA is fully paid, you would still be liable for the full debt outstanding.
How much do you owe in total to your creditors ?
Started IVA 27th Feb 2012 - Due to complete 27th Jan 2018 !!
Full & Final submitted and accepted 30th March 2015, paid 10th April 2015 - 3 yrs 1 month into IVA
Completion Certificate received- 30th April 2015!!
Hello Diane and welcome to the forum,a full and final offer can be made at anytime during the term of a IVA,even at the outset,any offer that is close to your original dividend normally gets the thumbs up with creditors,making a offer close to the outstanding balance of payments means you will meet your IP,s proposed fees aswell,so to complete your iva early i would go for it.good luck.
It is possible, but I am sure your IP would have preferred if this had been the basis of the original offer which could have prevented additional work for them now. Anyone with a car of that age, should seriously consider whether it will last for the course of the IVA. We do this with our own clients as a matter of course - generally when the car is 8 years or more.
yes melanie, i understand what you are saying but a f&f at the start was not possible, my circumstances have changed and i am now looking at a possible divorce off which has come as a total shock, my relative is offering us this lifeline in order to help try to keep my family together, and if i am giving my ip extra work then i am sorry, i hope that he understands this crisis and total life changing situation that i now face and is prepared to help to the best of his ability, by offering the total amount of the remaining payments as a f&f offer now, and avoiding a very likely fail in the future not the best outcome for all concerned. i would greatly appreciate you advise on how to sort this mess out, would a f&f be looked upon more favourably if it was running for longer?
my ip new all the details of my car and my job and that the to go together but nothing was ever said about it.
just an update, i have been in touch with my iva company with regards to a f&f settlement, i was told if i go down this route at this early stage my creditors would be expecting the full amount of my total debt of which is £59000, or i could put an offer forward in access of the amount agreed to be paid back, can anyone advise me if this is right or am i being fobbed off
It's a difficult one as I can see both sides, your IVA company probably can't understand why only a couple of months ago you were happy to go into a 5 year IVA with a 13year old car and then 2 months down the line want to lease a car through work making your IVA unviable and now can offer a F&F, on the other hand, you then add you are now going through a divorce so it looks like your circumstances are going to change anyway? how does this affect your I&E moving forward?
When I was proposing our IVA I had an 11 year old car and looked at leasing through my work and took this route which was built into our proposal, at the time my own car was fine and I didn't feel right about getting a brand new one when we were heavily in debt we couldn't afford to pay but my IP reassured me that it would be better to have a good car that would last the IVA so I took that option and it's worked out great so far.
It is a shame this wasn't addressed before you started the IVA, but what's done is done I guess. But if your home circumstances are going to change now you are divorcing perhaps you need to discuss again with your IVA company, ask to speak directly with your IP.
your right foggy my reaction was not a positive one, nothing seems to have gone right for a while now, i was delighted to get this iva approved i thought that this was the turning point and that there was a glimmer or hope that everything would work out, but it seems this is not to be, i think that i will take a little time to gather myself together and see what the future hold before i make any major decisions i will try and keep the iva going for as lone as i can, my relatives offer is an open one which is fantastic.
Given the circumstances that you have described Diane, I don't see why you cannot put an offer forward now equivalent to the remaining sum of the IVA payments. It is unfortunate that this is so early on in the process, but it certainly does not mean it is denied to you.
I hope you manage to keep your marriage and family together. These things are far more important than having a few debts at the end of the day.
