Hi everyone. This is my first time posting here so a big hello to everyone. Anyway, here's my tale:
I'm 2 years into an IVA (just about to start year 3). The original debt was 18,500 and Im due to pay back 13,200 over the 5 years. I pay £220 p/m and have paid this religiously, on time every month. My situation has changed however and my girlfriend (who has nothing to do with the IVA) is pregnant and due to drop on xmas eve. We're both really happy but I'll now have to start paying for everything. I'm not complaining at all about this but at the moment she pays half of most bills and the rent so my financial circumstances are going to change a lot. Basically, I worry that I'm not going to be able to pay the IVA. I know there is bankruptcy but I really don't want this at all because one day I'd like to buy a house and all the other stuff most people want. My dad mentioned he might be able to lend me a lump sum to get rid of the IVA. By my recogning I've put about 5K into it over the 2 years which would leave about 7k left. My dad (who is not by any means a wealthy guy) said he might be able to give me £5000 as a loan to help. My question is would this be enough to get a full and final settlement on the IVA or am I just living in a dream world?
Any help / advice that anyone could give would be most appreciated. Thanks a lot for taking the time to read this to the end!
Hi and welcome to the forum, firstly congratulaitions on the news of the pregnancy. I would definitely talk with your IP direct and make the offer, making sure you tell him/her that the loan from your father is only to bused for the purpose of a Full and final settlement due to your change in circumstances. I hope it goes well for you x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
Thank you Lesley. I will give them a ring about it! Do you think the figure I quoted (£5k) would be enough as a settlement (or could it even be too much? - I think I already know the answer to that though [:D]). Don't want to sound stupid on the phone to the debt people when I ring! Your help is much appreciated, thanks
I think to reach as near to the original dividend as possible will always be looked on more favourably. I wish you all the best with your offer and let us know how you get on won't you? x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
Welcome from me as well. As Lesley says, anything close to the original dividend will be looked upon favourably.
Congratulations on the impending new arrival, what a fab Christmas present for you both!
Good luck.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Hi, thanks for all your help guys! From what you say then it seems that an offer of £5,000 would be refused as its not near the original dividend? Or am i missunderstanding this? Also, surely it is better for the creditors to get something back off me because when the baby comes its highly likely that I'll have to start defaulting on IVA payment and I guess that will lead to bankruptcy?
Thanks once again, you're all being really helpful.
Spoke to the debt people today. They said that they would not be able to look at anything until my review in July. The woman i spoke to said that if the offer was not acceptable they could lower the payments but extend the IVA. The thought of having the iva extended is horrendous so if its not acceptable as an offer would bankruptcy be the way forward given the fact that my IVA would run for however many more years so my credit rating would suffer for about the same length? I really hope that they think the offer would be acceptable.
Cheers guys.
That is rubbish - why do you have to wait till July?? Your IVA Company has to put your offer forward and then it is down to Creditors whether or not they accept it.
As far as I am aware, they can put your offer forward at anytime, they just have to convene a creditors meeting.
Your IVA may just be extended by twelve months, and regardless, it would drop off your credit reference at the end of the six years.
If you went bankrupt then that would be on your record for six years from the date you were declared BR.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I think the full and final offer should be put forward as a basic 'take it or leave it'. Given your personal circumstances it may not be the best advice to extend the term and put your new family under long term financial pressure.
Your IP firm are probably trying to incorporate the variation into the annual review rather than do both but that is not far away and if you provide all the required documentation in advance there should be no delay in calling the meeting.
Ray is right in that the offer could be made now but the IP firm would still need a new income and expenditure account and evidence of the money on offer. Hopefully it all works out.
I am myself currently going through the process of F&F settlement. Firstly, the others are correct in saying that an offer can be put forward at any time, my account manager told me that I couldnt do an offer because my account was in arrears. After having a moan on here it was picked up by my company and I managed to speak with someone a little higher up the chain and a lot more knowledgable who advised me what to do next. I wont bore you with details on my particular situation, basically my expenses will increase a great deal if I dont manage to get a F&F accepted if this happens then I, like you will likely default on the arrangement. I was advised to write a letter explaining my circumstances and draw up a new income and expenditure report to prove that I wouldnt be able to afford the payments. I have now sent this in and the company have been in touch and have asked for a letter from the third party who are lending me the money to confirm that they are willing to do so. I also have an appointment arranged to go through to see if the proposed budget is realistic and also to make sure I havent missed anything out this is due to happen on wednesday this week. I gather this is to make sure that everything is in place before the IP spends any time in looking at it. In my case I owed 29k, had an IVA agreed at 18k, have paid in 5k and have 9.2k for the offer which is quite a bit short which hopefully my circumstances will justify. My advice to you would be to put a good argument together that will show the creditors that if they dont take this money then they are likely to get nothing. Hopefully this isnt to much of a ramble and aids you in your goal.
Hi, I'm with X-Debt. They all seem nice and I've no problem with them at all. Guess I'm just going to have to wait till July when they do my review. stu287 - Thanks for the advice, most appreciated. Would it be a good idea if I was to write a similar letter to my debt company suggesting the revised income/outcome once baby arrives. Have worked this out myself and I make it a monthly loss of -£480 and this is not accounting for things for the baby like nappies and the like. It just comfirmed my fears that I will not be able to continue with the IVA.
I would certainly start drafting one up, I couldnt say for certain that the same process would need to be followed but I think it would be similar. I included a copy of my current I&E in order for them to compare easily. I would also get your dad to confirm that he would be willing to lend you the money by signing a letter. Please make sure that you clearly state that the money would only be available should the offer be accepted. You only need to wait a couple of weeks now but pre empting their requests should hopefully speed up what can be a fairly long process.
