Early Settelement Advice Please

[Sadsack]

Hi
I have an "opportunity" to possibly end my IVA within the first year by remortgaging my property. Although I have been trying to sell, to no avail, I have been looking into remortgaging as an alternative. By my calculations, I should be better off by approximately £575 per month even with a HUGE mortgage. The numbers are as follows - if there is any advice or my calculations are incorrect, would someone please let me know.

Total Debt £106k
Return of 41p/£
Amount to creditors £43,460 ex IP Fees
Paid to date £3,480
Settlement Offer circa £44k????

Thanks in advance

Sue

Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/

[Adam Davies]

Hi Sue
The figures are fine but can you remind me of the equity clause in your IVA ?

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

[Sadsack]

Hi Andy

There is no equity clause in my IVA - only a minimum return of 41p/£ and to realise this I would have to release equity.

Sue

Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/

[MelanieGiles]

Go for it - but do remember that people like me like to be paid, so you will need to include IP fees in the final sum. How much have they charged you to date?

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

[Sadsack]

Hi Melanie

I have no idea what they have charged to date, but I most certainly will know tomorrow as I have asked them to do some number crunching for me. Will let you know as soon as possible.

Sue

Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/

[finebridge]

Hi Sadsack,

Looks good to me, but as Melanie has stated don’t forget to add fees and also make sure there isn’t a modification in regards to early settlement!

Kind Regards

Nicola


Finebridge Ltd
22 Laud Street, Croydon, CR0 1SU
0800 180 4212
www.finebridge.co.uk

[finebridge]

Sadsack.....

Whoops.... typed too slowly and you had replyed....Sorry

Finebridge Ltd
22 Laud Street, Croydon, CR0 1SU
0800 180 4212
www.finebridge.co.uk

[Sadsack]

Thanks Nicola
There is no modification regarding early settlement so I am ok on that score.
Everything in this thread is based upon a) the valuation of the property is correct and b) IP accepts proposal and is happy to put it before the creditors! and most importantly - the creditors agree!

Fingers crossed!!!!

Sue

Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/

[tracy.h]

Really hope this works out for you,you deserve it.

Tracy

[Skippy]

Good luck Sue x

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[Sadsack]

Hi everyone

There have been one or two developments regarding this proposal of mine.

Firstly, to answer Melanie's question regarding IP charges, let me be brutally honest and say that I am GOBSMACKED!!!!!!!!!

I have been in my IVA for 10 MONTHS -- charges by IVA company -

£6,647!!!!!!!!!!!

I think Chris might enjoy reading this!!!!

Secondly, IVA company calculated that should I settle, the return would drop from 41p to 36p. Lets hope the creditors will accept this.

Sue

Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/

[MelanieGiles]

Hi Sue

Offering an early settlement at anything lower than the original dividend - especially as you have only been in the IVA for 10 months, is a recipe for failure.

Those charges seem very high! They should only be charging for a nominee's fee, first year's supervisor's fee and a variation fee - can you get them to give you a breakdown?

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

[Sadsack]

Hi Melanie

My thoughts exactly!!! The fees are, in my opinion, exhorbitant! they have broken it down as such:

Supervisor Fees - £3,000 ex VAT (incl. Final Report)
Nominee Fees - £2,500 ex VAT
Total - £6,647 (I guess this includes VAT)

Original costs in Court Documents -

Nominee's Fee - £2,500 plus VAT
Supervisor's Fees - £900 per annum plus vat
Total £8,225 incl VAT

They are obviously calculating their costs and deducting them from the £44k proposal leaving £37,353 to pay the creditors which leaves little chance of this F & F going through.

As you said in your previous posting, IP's have to get paid and I am quite happy to do this, but to pay this amount of money for 10 months work is in my humble opinion, a rip off!!!!

Sue

Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/

[MelanieGiles]

OK - so you need to query why the nominee fee has increased by £500, and the supervisory costs to £3,000. Are they saying that it is going to take over three years work to finalise your case? Please ask your IP to justify these costs once more, as creditord do have the ultimate say-so in these matters.

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

[Sadsack]

Thanks Melanie

I did query it at the time and the response was that because I had requested my File Notes - effectively "recordings" of conversations between myself and the IVA company.

Photocopying at 1p per sheet plus vat
Postage at current first class rate
Stationary charges at 34p per creditor per annum plus VAT plus £9 per case to cover the provision of files
Storage at £20 plus vat per box per annum
Car mileage to be re-charged at the rate of 40p per mile plus VAT

I do wonder where they drove to - certainly was not to me!!!!!

Sue

Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/