hopefully clarifing a couple of things for me

[simba3550]

Hello, I am hoping you might be able to clarify a couple of things for me. I have 18months left to go on my IVA, I have paid approx £13,500 of a £21,000 debt and I have just made a final settlement offer of £10,000. Firstly is this an acceptable amount( i am remortgaging to do this) and also am I likely to get a reduction in the fees being charged. The information sent through to me by my iva practioner is not clear to understand but they have said that an amount of around £16,500 for the 100p in the pound is what the final amount should be, please can you explain
many thanks

[MelanieGiles]

Hi simba and welcome to the forum

I don't agree with your IP - unless you were required to release equity from your property as part of the IVA proposal. Could you clarify this point please.

[simba3550]

Hi
I want to finish my IVA early and I have equity. The property is in joint ownership with me and my estranged husband. He has not paid any of the debts that arose while we were together so I have been paying everything for the last eight years by myself hence the IVA. He is willing to sign everything over to me for a lump sum of £5,000 ( the property is only worth about £65,000, and the mortgage amount outstanding is £15,000) I am assuming that my IVA practioner wants £16,500 on top of the 13,500 I have already paid. Is that amount likely to be correct as it would take the overall amount I pay to 30,000 from an original debt of 21,000

[MelanieGiles]

But was there a requirement for you to raise equity against the property under the terms of the IVA in any case?

[simba3550]

I believe so, but in year five if I remember correctly. It was never really an option until now as my husband had refused to part with his share of the property.

[MelanieGiles]

You will need to discuss the implications of this with your IP - because if the property is jointly owned, and your husband is going to sign over his share, then this is probably why the IP is looking for a higher sum.

[simba3550]

ok thank you for your help.

I have just checked the paperwork and it states that 'at the end of the five year period I need to make resonable steps to make any equity available to creditors'

[MelanieGiles]

That is extremely woolly and could be interpreted in several different ways. I feel you should take advice from your IP as to the best way forward with this, but if you can afford a remortgage which pays the debts off in full that is likely to be the best way forward.

[simba3550]

Hi Melanine
I have just heard back from DFD, they still wont clarify how much I owe, but are now saying they will put forward the £10,000 proposal. They want house valuation and mortgage redemtion certificates all of which my mortgage adviser has. Thier delays and lack of interest are really starting to potentially mess this us. Is there anything I can do to speed things up
many thanks

[MelanieGiles]

If they have said they will put the offer forward for you - you are nearly there! Ask them how long it is all going to take so that your expectations are managed.