I have been paying in massive amounts per month into my IVA, due to pay increases and overtime uplifts, but it has now come to the point that I am almost paying in what I take home each month (apart from about £300). Hubby and I are in a linked IVA, and so it very much feels like I am working for nothing. (I am fully aware of my responsility to ensure the money is paid back that I spent).
I have looked at the full and final posts and I am confused and would hope that someone could help me with some true figures.
My IVA was agreed at 25p per £1 dividend with IVA proposal on chairmans report agreed at £30600.00.
I am just checking on my IVA review report for this year (July 2011) and to date four years in, we have paid in £22156.46. We have made normal monthly payments of £835.00 per month since our review in July 11 plus 50% overtime uplift payments also since our review, so we have actually paid in more than the £22156.46 to date.
Am I understanding correctly that I could make a full and final offer of close to the original £30600.00 and it could all be over? We still have 2 years to go, as Northern Rock would only agree to a 6 year IVA, but if we are this close to the original proposal value, would the chances of an F&F be possible?
The figures look like this:
IVA proposal July 08 £30600.00
Our contributions to date July 11 £22156.46
Supervisors/Nominee Fees Pd to date £(3786.39)
Payments distributed to creditors
to date £(12089.40)
Money held on account £ 6280.67
If there is a possibility that we could make a F&F, would someone advise me please?
Thanks so much.
Kazzy xx
There is light at the end of that dark tunnel. Promise.
Are all your allowances correct at the moment as if you only have £300 left it might be they need adjusting (I presume you mean £300 to pay for food etc? or is that whats left once you've paid everything out?).
I suggest you speak to your IP to gain a better understanding as to how much you would need to offer to end the IVA.
Hi. A full and final near to the figure which would bring you up to the estimated dividend should be acceptable, as not only are the creditors getting what they agreed to, they are getting it 2 years early! However, you will need to factor in equity on the property, and either add this in, or convince the creditors there isn't going to be any in a couple of years. I am sure your IP would be happy to discuss this with you.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Our original dividend was payable at £425.00 when our IVA was agreed in July 2008
At the 1st review July 2009 our payments increased to £590.00.
At the 2nd review July 2010 our payments increased to £610.00.
At the 3rd review July 2011 we had not sent it all of the uplift overtime monies throughout the year, so our monthly payment was inceased to £835.00 taking away every penny of our disposable income to repay the amount owed.
In addition to this, we pay 50% of all overtime monies earned, so this can make our IVA payment plus overtime sometimes £1100 or £1200 per month. So although the calculations have been done correctly between our joint income, theoretically, it means that nearly all my money gets paid over to the IVA.
I have queried it with my IP, and they have explained things properly to me, as I actually thought I would be better off going bankrupt, but they strongly advised against this four year in.
So, you can understand why it would be better if this could be ended early, because actually they way I feel at the moment, it isn't really worth me working.
Foggy, thanks for your reply, we rent property from the council so there are no equity problems to take into account.
Kazzy xx
There is light at the end of that dark tunnel. Promise.
Hi again. So, the original dividend was estimated at £30600, which you have nearly met, to date. This puts you in a stronger position than most, but ... there is always a "but" ... the creditors have every expectation of you being able to maintain your current payments for the next 2 years, so are anticipating getting another £20000 - ish in the final couple of years.
Unless you can either offer a sum close to this, or put forward a compelling reason why not ( ill health, impending job loss etc), they are unlikley to accept an early settlement.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
i think a dividend near to the original amount is what is usually required, but i think its worth bearing in mind that if your payments have increase due to a payrise then the dividend over the years would also increase.
i am aware that when a full and final offer is made they look into the possibility of large pay increases and therefor a bigger dividend over the repayment period.
kat
IVA accepted 6th May 2011, Full and Final accepted 17th April 2012.
So with what you say in mind. Really, unless you stay on the same wage for the whole period of your IVA, the proposal figure that they originally agree on, is not really worth the paper it's written on. I undestand the committment of having to pay back what you owe, but you commit to an agreement at the beginning of the IVA, and to my way of thinking, once you meet your contractual agreed figure, that should be it. But, and you rightly say there is always a 'but', these things will never work in your favour and unless you pay the full amount owed, really all you have gained, is not having to pay interest on your borrowings, which in our case, does actually amount to quite a lot.
Onwards and upwards...........
Thanks for your replies.
Kazzy xx
There is light at the end of that dark tunnel. Promise.
It seems unfair, but, at the outset, you agree to pay over your disposable income. As this increases, so does your payment. At least you get to keep 50% of the increases ... and, at the end of the day you have a sum written off and don't have to hand over a frightening amount of interest that was frozen.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Yes I know Foggy, that's what my IP has always said, and she has been so helpful throughout my journey. But when you are paying over so much every month, and struggling through, its galling to think there is two more years of this to put up with. I am also really worried about how I am going to fund my son at Uni this starting this year, and it's all whizzing around in my head with no real answers. To be honest, I don't really know which way to turn, other than continue what I am doing. It's relentless.
Kazzy xx
There is light at the end of that dark tunnel. Promise.
I cannot see how it is unfair at all to be frank. You need to take yourselves back to the time the money was borrowed - the intention was to repay it back in full, and on that basis creditors agreed to lend. The fact that circumstances change for the better during an IVA is fortunate for both sides, and these days credirors do allow a percentage of these monies to be retained - difficult to see how this would cause someone to struggle, unless circumstances have changed which are not being taken into account.
If your contractual payments have increased then a full and final settlement ought to be based on the amount of future contributions at the increased rate you are prepared to pay - as this is the expectation of creditors. In reality you can offer what you like - or what your funder is prepared to offer - but the nearer to the future projected payments the more likelihood there is of success.
This response is general. Kazzy - I will respond to your e-mail more specifically later on this evening if that is OK.
