I have come into an iheritance

[Emmet67]

I have come into an iheritance and have inquired about a full an final settlement with my IP, under the impression that will negotaite with the creditors on my behalf. My IVA was for £45,000, it was re negotiated and extended, to date i have paid £7000. MY IP came back with a figure of £77,000!! Can i make an offer of settlement if my inheritance will pay off all the debt or will have have to pay all of it? Is the interest of 8% calculated for each year or just on the full amount?? Would be extremely grateful for any help.

[Skippy]

Hi and welcome to the forum.

Was the £45k your full debt or the amount that was payable in your IVA?

You are liable for the full amount of your debts until your IVA has completed and an inheritance would need to be paid into your IVA.

[kallis3]

Totally agree with Skippy.

An inheritance will need to be paid across in total.

[Adam Davies]

Hi
Inheritance is classed as a windfall and has to be paid into your IVA.
The most you can repay is your original debt plus IP fees. Is your IP calculating interest at 8% each year in addition ?
Regards

[MelanieGiles]

How much was your inheritance and how much do you owe to creditors in total?

[Emmet67]

Ineritance is estimated at 80k and the total owed at time of taking out the IVA was 45 k

[Emmet67]

I'm more than happy to pay what I owe, but the estimate I've been given makes me pay back twice what I owed, this doesn't seem reasonable. Advice on what to do would be gratefully appreciated

[MelanieGiles]

You need to ask your IP to provide you with a full breakdown of the amount they are seeking to charge- and make sure that their fees are reasonable.

Difficult to argue that paying statutory interest is unfair, when you agreed to enter into interest bearing arrangements when the debts were first taken out.

[Emmet67]

Thanks for the advice! Will speak to IP and hopefully sort everything out, but you never could be back here! Thanks again

[Emmet67]

Hi, received this explanation from IP, though still didn't account for a lot of money, so have cut and pasted the emails, any advice if this is correct would be greatly appreciated

''Please find enclosed a full breakdown from our accounts department –

Stat Interest applied as follows:

Total debt - £46,307.96

Yr 1 @ 8% = £3,704.64 - £50,012.60

Yr 2 @ 8% = £3,704.64 - £53,717.23

Yr 3 @ 8% = £3,704.64 - £57,421.87

Yr 4 @ 8% = £617.44 (1 sixth as a part year) - £58,039.31


Disbursements - £245 taken

Nominee fee - £2,500

Supervisor fee - £500 – Variation Meeting

VAT - £525



Totals £3,770

Paid to date - £7,205

Interest - £2.30

Totals - £7,207.30

LEFT TO PAY - £54,602.01

Amount required - £77,312.58''

When i questioned the amount difference from £54,602.01 and £77,312.58 this is the reply i got. Is this correct, just on £23,000 fees????

''Sorry, the last email was probably not very clear.


The additional monies are Supervisors fees @ 25% + VAT''


Please help, this amount in fees seems excessive

[Skippy]

That does seem quite high to me, but hopefully Mel and the other professional experts will be along soon.

[Shining]

We'll keep this bumped up for the professionals to have a look at. x

[D&G]

Oh dear, not having a go at anyone in this line of work. But that is disgracefull.I would seek an expert opinion, on this one. If i was in your position i would be very tempted to let the iva fail and negotiate cash settlements with creditors myself. I whole heartedly wish you all the best with this.

[back on track]

25% + vat?
b***** hell thats a better return than the bankers get.
who are you with.
surley your proposal states what the fees were when you started the iva.
if its finnishing early then you have a case to reduce them slightly as they will not be running your iva anymore(only a bit tho as its there income)
mel is this 8% intrest standard or how do they work it out?

[Emmet67]

I'm with Payplan