just completed 3 years of my IVA

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hazel.k

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Post by hazel.k » Wed Apr 04, 2007 12:00 pm
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I have just completed 3 years of my IVA with another 2 years to go but I would like to pay it off earlier. Will I have to pay off the exact amount that I would have paid or could I offer a lower amount. I currently owe about £12k. I would be grateful for any advice given.
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MelanieGiles

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Post by MelanieGiles » Wed Apr 04, 2007 1:56 pm
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Hi Hazel and welcome to the forum

You will need to ask your insolvency practitioner for guidance on this matter. For my own clients, I usually work a settlement out based upon the original dividend, with a little bit more suggested to ensure creditor acceptance. This does, however, depend upon where the money is coming from - if it is being realised from an asset which is already included in the IVA, then you may have to go higher depending upon the equity levels available.

Can you advise how much you are paying into your IVA each month, and where the money to settle is coming from?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk
Regards, Melanie Giles, Insolvency Practitioner
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hazel.k

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Post by hazel.k » Wed Apr 04, 2007 3:06 pm
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Hi Melanie

Thanks for your reply. I am currently paying £515 per month into my IVA. My proposal was to pay £30,000 back to my creditors (my original debt being £55k). My boyfriend has offered to pay off my IVA as a gift.
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Skippy

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Post by Skippy » Wed Apr 04, 2007 4:32 pm
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Hi Hazel, I'm sure Melanie will clarify this, but I think you will need to go careful if your boyfriend is paying this as a gift. I seem to remember that if the 'gift' doesn't repay 100% of your original debt (plus statutory interest if applicable) your creditors may want you to carry on paying into your IVA as the money could be classed as a windfall. This doesn't apply if you have to repay the money to your boyfriend...

Onwards and upwards!!!

View my blog at http://skippy13.blogs.iva.co.uk/
Last edited by Skippy on Wed Apr 04, 2007 4:33 pm, edited 1 time in total.
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hazel.k

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Post by hazel.k » Wed Apr 04, 2007 4:44 pm
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Thanks Skippy. If I were to say it's a loan then from my boyfriend, would that not cause other problems?
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Skippy

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Post by Skippy » Wed Apr 04, 2007 4:54 pm
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Hi Hazel, I'm not an expert, just someone who's tried an IVA and am now BR. You are better off waiting for Melanie or one of the other experts to help you on that one, and I hope I haven't worried you unnecessecarily.

Onwards and upwards!!!

View my blog at http://skippy13.blogs.iva.co.uk/
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Skippy

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Post by Skippy » Wed Apr 04, 2007 4:56 pm
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Hi Hazel, I'm not an expert, just someone who's tried an IVA and am now BR. You are better off waiting for Melanie or one of the other experts to help you on that one, and I hope I haven't worried you unnecessecarily.
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freelili

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Post by freelili » Wed Apr 04, 2007 5:11 pm
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I think that its Ok to pay it off with a 'gift' as that is the only reason/purpose that the money is offered. Its not really a windfall like a lottery win or inheritance. You are not allowed to have a loan in an IVA, right? I am sure I will be corrected if I am wrong

LILY

I asked God for a solution and have to live with his reply.
Last edited by freelili on Wed Apr 04, 2007 5:13 pm, edited 1 time in total.
LILY

http://freelili.blogs.iva.co.uk

I asked God for an answer, I have to live with his reply.
Exsisto an angelus quod planto quispiam sentio melior.
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freelili

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Post by freelili » Wed Apr 04, 2007 5:14 pm
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Oh, I am not an expert either

LILY

I asked God for a solution and have to live with his reply.
LILY

http://freelili.blogs.iva.co.uk

I asked God for an answer, I have to live with his reply.
Exsisto an angelus quod planto quispiam sentio melior.
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Skippy

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Post by Skippy » Wed Apr 04, 2007 6:33 pm
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Good point Lily. I just seem to remember someone being told that a family member could make an offer, but if there was any disposable income left they creditors might still want it.

I'm leaving this one to the experts!

Onwards and upwards!!!

View my blog at http://skippy13.blogs.iva.co.uk/
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MelanieGiles

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Post by MelanieGiles » Wed Apr 04, 2007 7:05 pm
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Hi girls

Skippy - not sure where that 10% thing comes from you refer to. I have not come across it personally.

To Hazel - I would suggest that your partner calls this a loan, which is repayable at the rate of £515 per month. In this way creditors get their dividend, but cannot argue that you can continue to make your payments as you will be left with no disposable income.

Let us know how you get on.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk
Regards, Melanie Giles, Insolvency Practitioner
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Skippy

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Post by Skippy » Wed Apr 04, 2007 7:36 pm
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Hi Melanie, what I was trying to say was if someone offers to pay your IVA as a gift, but is not going to pay 100% of the outstanding debt, creditors could view it as a windfall as you would still have disposable income, whereas if it's a loan that needs to be repaid there would be no disposable income.

Oh I know what I'm trying to say even if no-one else does!!!

Onwards and upwards!!!

View my blog at http://skippy13.blogs.iva.co.uk/
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freelili

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Post by freelili » Wed Apr 04, 2007 7:48 pm
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dont worry skippy we still love ya

LILY

I asked God for a solution and have to live with his reply.
LILY

http://freelili.blogs.iva.co.uk

I asked God for an answer, I have to live with his reply.
Exsisto an angelus quod planto quispiam sentio melior.
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MelanieGiles

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Post by MelanieGiles » Wed Apr 04, 2007 8:49 pm
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OK Skippy - if I had read your post properly (read it as 10% not 100% I would have understood you!

Your point is a valid one, but the amount would be unlikely be gifted, as this may put the money at risk of being a windfall.

I've had a hard day - take no notice!!!


Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk
Regards, Melanie Giles, Insolvency Practitioner
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Skippy

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Post by Skippy » Wed Apr 04, 2007 8:58 pm
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And Man Utd are losing to Roma so I'm a bit distracted!

Onwards and upwards!!!

View my blog at http://skippy13.blogs.iva.co.uk/
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