Full and Final Help

[brassic99]

Hi

My IVA is nearly at half way. I originally owed 131K and am paying back £826 per month which equates to 40%

I have a good job but work in the construction industry and there is talk of redundancies within the company with a few of us undergoing a consultation process to review our positions.

I have approximately £27k of payments still to make and am very nervous that If I do lose my job that I wont be able to fulfill my IVA commitment.

I can get £15k from family and would anticipate that if anything was going to happen with work it would not be for the next 2-3 months. At that time I would be down to about £25K to pay.

I am with Debt Free Direct. I have read on this board mixed reviews about them but to be honest have never had much contact with them.

What do you think I should do. There is a very real possibility that I could be out of work. Do I act now or leave it until the worst happens.

Thanks for any comments in advance.

[MelanieGiles]

Hi there and welcome to the forum

I would await the outcome of the consultation and then make a devision. Will you be entitled to any redunancy money if you are made redundant?

[ivas4us]

You can do a full and final settlement offer even if you continue to be employed but £15k at this moment in time may be a little to low to get accepted but your Ip will be best placed to advise. If you are made redundant then at that time they may snatch your hand off for the £15k. Good luck.


Paul

[brassic99]

Thanks for the replies. They are very gratefully received.

There will be some redundancy money but I have not been with the company for that long. There are others that have been there longer, which is one of my concerns.

Best thinking then is to wait and see if the worst happens then. If I do get made redundant and cant find alternative work my IVA payments will stop almost immediately as I have no savings.

At that point what is the process. I could do without going through bankruptcy. I could have taken that as an option at the start as the debts where quite high. I have worked very hard to keep up the repayments and havent missed one. To start now would be unthinkable.

[MelanieGiles]

You would need to speak to your IP as soon as you know something for definate. They are best placed to advise as they have detailed knowledge of your case and ought to know the likelihood of creditors accepting a reduced offer in view of your circumstances.

[iva100]

I too am in a similar possition, i have been in my iva for 18 months and too work in construction.

I am fully aware that come december i will have no work and no income, my partner is in ill health and has been diagnosed with ms. I am not sure how long she will be able to work for and therefore are waying up the options.

I am currently paying £700 per month and will have 36 payments remaining, my brother has offered me £25k to pay my iva off as breaking the terms of my iva are not an option. I could not lose my house with my partner in ill health.

If i were to offer the £25k as a full and final settlement would it be accepted ?

[ivas4us]

iva100 I would have thought so if you complete the IVA you only have £25200 left to pay. I would offer less to start with and see how you get on.

[kallis3]

I agree.

They would certainly snatch your hand off with £25,000 so perhaps a lower offer to start off with could be an option.

Speak with your IP and see what he/she says.

[MelanieGiles]

They will grab that offer most likely - it is a very good one and will seem them repaid much earlier than they would have originally anticipated. How nice of your brother to help you out in this manner.

[iva100]

so true, but he is in a position to help. I have had 18 months of my iva and all was going fine but then with one thing and another things have gone a bit pair shaped.

My work will only last till december if i can sort a few things out and with the credit crunch my type of work is hard to get.

Hopefully my offer will be accepted due to my circumstances and offer.

[MelanieGiles]

I am absolutely certain that it will be accepted - so the very best of luck and don't forget to let us know how you get on.

[kallis3]

Good luck from me as well.