Final IVA payment

[skint]

Good morning all. I was looking on some advice in regards to a final IVA payment.

My original debt was calculated at £24395. I have been in my IVA coming up to three years now. I am in arrears by approximately 6 months as a student loans payment was calculated as part of my IVA payment.

My IVA company has said that they can reclaim this money from the student loan company which would clear these. After my three years (in a couple months) I would have paid my IVA company around £14160

At the moment I am living at home and my current job situation isnt too good due to the current economic climate. I have explained this to my IVA practictioner.

A family member has come forward and agree to pay a further £7000 into the IVA if this will be a full and final payment. I have put this offer in writing and I received their reply this week.

My IVA practioner is willing to put forward a final offer figure of £15000.

It may be possible to raise the bar slightly and get some more money from my family member but to be honest I cant come up with the entire 15K. The most I could probably get is 10K and should they be able to reclaim the money from the student loans company that would bring it up to just over 13K. But I really cant do any more than that.

That was another thing. I was told that you cant really add a student loan to an IVA. is this correct?

Sorry to have rambled on for so long any advice would be much appreciated. Thank you.

[pixie]

Hi Skint and welcome to the forum.
As far as I'm aware the old kind of student loans can be entered into an iva but the new kinds can't. It would depend on how old it is.
Final settlement figures are usually based on returning the original agreed dividend. This would be somewhere around the monthly figure x months left - supervisors fees mark.
Is your student loan included in the 24k or is this ontop of that? Have you been paying this seperately?
One of the experts will be able to advise better with this info.

[skint]

Hello Pixie,

Thank you for your reply and the welcome to forum.

I have two types of loan. An earlier one which I owed around 1875 on one And and 2 newer ones which they take the payments directly from my salary. The 1875 (older loan) was included in the IVA. But I have 2 more for 3750 each that werent included in the IVA (taken from salary). However the IVA practitioner is saying that this money that goes to them should be going into my IVA. So the £3000 that went to them has to go back into the IVA.

So in essence i have been paying my student loan seperately. And the IVA on top of that.

If my figures serve me correctly. In a couple months I would have paid

14160 Paid so far
3000 (In arrears due to student loans)
7000 (to put on top as an offer of an F & F)

Thats £24160 My IVA fees go on top of this or are they in this figure?

I have spoken to a family member this morning who is willing to go up to 10K extra but this is all I can offer. So the above figure will rise to £27160.

But this is all I can afford.

If my IVA practitioner sees it fit to say again I won't put this offer forward what will be my predicament then. As it stands I am living with parents at the moment. And have done so for the past three years but now I have to find a place of my own.

This will affect the contributions I am able to make to my IVA considerably.

Thank you so much for your input.

[MelanieGiles]

You must insist that your Supervisor puts the offer forward to creditors - as is your right. It is not for the IP to be judge and jury, and your creditors may well accept the offer. I cannot understand why it has taken them three years to address the issue of the student loans payments - and all student loans ought to be included into the IVA - regardless of when they were taken out.

Your IP needs to demonstrate that it is no longer viable for you to live at home with your parents, and that you have to move out causing you additional expenditure. I feel sure that the offer you are suggesting will be accepteble to the majority of your creditors.

[skint]

Thank you for your reply. Ive made an error with my figure above I put a 2 instead of a 3. It should have been £34395

I have spoken to my IP today. They have said that the letter I was sent was for the remaining amount of £24395. They would accept an offer of £15000 for this amount.

I mentioned my student loans company. My IP says that I need to contact them to get them to stop the payments and back date the payments I have made to them and get them to send them that amount. It is around £3000.

At this time they will be in a position to work out a new final settlement payment.

So with my £10,000 and the £3000 returned from the loans company is this a satisfactory figure that could be put forward instead of the £15k However by the time I have sorted this I think I would have paid the difference over the next few months.

I have explained that I will have to move out shortly but they are adamant that before they do anything I need to deal with the student loans company first and they need to have that cheque in their hands.

I feel to be honest that I am being pulled in every different direction and Im trying to resolve this quickly and as best as I can whilst being fair to my creditors.

[MelanieGiles]

I am suprised that your IP is asking you to chase the Student Loans company - we would do that for our clients.

As I said earlier, the only people who can determine whether your offer is satisfactory are the creditors - but your IP must put it forward for you if it is the best offer you can make, and you can forsee that you will not be able to maintain your payments to creditors

[rayb]

Hi Skint,

Have you actually spoken to your IP directly or just the Staff. If not I would ask to speak to them as I am sure they would help more.

As Melanie says your company should be doing all the work for you not yourself as that is what they get there fees for. Call them straight back and argue the point - I know I would [:D]

[skint]

Thank you so much for all of your help. I did think the same thing myself. But I was wondering if it was just me.

I will get back in touch with them. I didnt speak with my IP directly this morning. I spoke with someone that he requests I contact everytime I ring the office. I dont think I have ever spoken to him directly in the past 3 years.

Thank you for your time in replying to my queries everyone. It has fileld me with a bit more confidence in trying to get this sorted as soon as possible.

[skint]

I have managed to chase the student loans company myself. They have agreed to repay the money to me that I have paid them for the past 3 years which amounts to around £2700. I will add this to my final offer and hopefully this time my IP will put my offer forward.

[rayb]

Best of luck with your offer and please keep us informed of any progress

[kallis3]

Skint, what a nightmare of a time you are having!

Good luck with your offer, fingers crossed that the creditors accept it.

Let us know how you get on,

[Adam Davies]

Hi
Good luck Skint, you have done well to sort this out.Let's hope that your offer is accepted.
Make sure that you insist that your IP puts it forward.
Regards

[Viki.W]

Good luck from me too Skint.[:)]

[Michael Peoples]

Good luck from me too and, as the others have said, insist on the variation being proposed in particular since you have done so much of the work yourself.

[skint]

I must say Im amazed at the things some of these companies say to you.

I have sorted out the student loans company and I am just waiting on a refund now.

I contacted my IP. Though I am never able to speak to him I am always referred to one of his colleagues.

I have stated that I am uncertain what next year will bring in regards to my job. I am sure many others are in the same situation and the fact that I have to move out. I think these reasons especially the second one are more than enough reason to request a settlement. I am still patiently waiting on an answer.

They said to me that they cant tell my creditors that due to the economic climate I wish to end my IVA early. They have sent me a letter telling me that if I can offer £15000 they will put this forward. I have made them an offer of £12000.

They have also informed me that due to the arrears which I am in (The money I am getting back from students loans company, all of which will be forwarded to them) That they will have to fail my IVA.

ANd I completely understand that ok the creditors will be getting less than they asked for on the pound. But with help from my family I can come up with this money now and clear it now. With the job situation and the fact that I have to move out Im not going to be able to afford the current payments anyway. Im just trying to figure out what they are doing exactly.

If my IVA was to fail am I entered straight into bankruptcy proceedings? And does the IP keep the funds they would normally charge for 5 years and turn the rest over to my creditors. Not that I want it to fail. I guess I am just overwhelmed by the whole thing. Thank you so much for your responses and apologies for rambling on