Hi, I'm new here and I just don't trust my IVA people (they never seem to get back to me and are quite abrupt when I eventually contact them) so I would be grateful for impartial advice.
I am 2 years into my IVA and I pay £223 per month.
I owed a total of £24000
My IVA total contributions will be £16056 over 72 months
I am selling my house which my estranged wife owns 50/50, after divorce I may end up with £10,000 - £12000.
Is there a rule of thumb what amount the creditors will accept as a final settlement fee ?
I will need about £5000 for a deposit to rent and buy furniture and basically set up a new home, I know I can’t buy so renting is only option. I currently house share but is not practical as I want to see my daughter every 2 weeks and let her stay over.
Does anyone know what the minimum final settlement figure would be acceptable or is this a ‘how long’s a piece of string’ question? Maybe a % estimate?
I just need to know what to offer, and if I need to offer the full £10,00-12,000 amount and then wait another 24 months of saving to set up home.
Many thanks in anticipation, I just feel no one will give me a guide and I can’t afford a solicitor for advice.
Thank you
Hi Shane. Basically with a full and final you need to offer the number of remaining g payments x the monthly amount. In your case the creditors might also be anticipating a chunk of equity at the end.
If there are pressing reasons for the offer, such as impending redundancy or long term illness, they will consider less.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
welcome to the forum and hopefully you will get some indication from forum members, however your case adviser is the only one that will be able offer case specific advise.
If you calculate the number of payments left by your monthly payment this will give you an indicative figure.
Have you any clause in your final year to release equity from your property ? If you have then this amount will need to be added to the figure calculated above - you can then have an indication of the amount that creditors would likely to consider accepting.
The issue of renting is difficult as unless you find a private landlord, you may be required to provide upfront rent - we had to do this and it was the equivalent of 6 months rent.....some letting agents are less lenient than others when undertaking credit checks etc....
Hope this has helped slightly - there will be no doubt other opinions from other members ....as I said before your own IP is really the person you should speak with.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
As a practising IP, my advice is always to make the best offer you can and get as close to the original dividend possible.
Was your house included in the IVA as an asset, or were you just required to explore an equity release during the final year based on a percentage of the property's then value?
It would seem reasonable to retain a sum of money to cover your relocation costs, including a rental deposit, and anything is really possible so long as your IP puts forward the correct arguments for the settlement. Would you be able to continue to fund contributions once the house is sold?
Hi Shane, sorry to hear you don't feel you are being treated well by your IVA firm, that is a shame. Most IPs will want to look after their clients and it is possible you are just dealing with lower level admin staff. Make it clear you expect to be treated with respect. As an IP myself we take fees to run an IVA so you are the client.
Anyway, as advised above you do need to speak to your case manager to see what they will be prepared to put forward as an offer. If they are rude and abrupt, escalate your query up the chain of command.
It is a good start to work out how much more would be injected and offer as close to that as possible. Does your IVA include the equity or is it just based upon contributions ?
If it is just based on contributions have a good think about the relevant reasons you may put forward to end the IVA early and offer as much as you can, make it an attractive offer.
Thank you all for your replies. I have finally received a reply from my IP after numerous requests for help and support. I must say that I am now getting the distinct feeling that the IP is really only interested in looking after my creditors and works for them and not me, but I suppose this is the reality, they earn their money on the basis of me paying my monthly fee over the 5-6 years. Anyway, they have now asked me to propose what I want to offer. My house is being sold and my estranged wife and I have agreed a 60/40 split of the equity, the solicitor has agreed this but now my IP is suggesting that the creditors will want a 50/50 split. Has it really got anything to do with my creditors? I thought as long as me, wife and solicitors have agreed then that is how the split will be?
I have paid approx £5500 so far over 2 years
my total debt was £25,000 and creditors agreed to just over £16000 over 6 years.
They have just received a PPI refund of £2500 from a loan I had years ago, yes they took it all (surprise surprise)(joke)
I will have appromately £12,000 from the sale of my house.
Does anyone know if it is feasible for me to offer £7-8000 of this to my creditors and would they let me keep £4-5000 for relocation/rental etc..?
If they allowed me this then is it possible that they might accept this payment as a final settlement figure?
The above would equate to me paying them £15000 of the £16000 agreed over 6 years. I know my original debt was £25,000 but would it be possible that they might agree to a final settlement based on the above or would I have to give them all of the £12,000?
Like most I want shot of the IVA and I simply will not be able to pay them the agreed monthly payment when I rent a property.
If they don't agree to this is bankruptcy an option? I don't mind the stigma of going bankrupt and I won't ever want credit again as I've learned my lesson so now it seems the better option. Obviously I'm hoping I can pay the creditors as much as necessary to end the IVA as soon as possible.
Any advice would be appreciated.
Many thanks
I think one of the issues is that if the property was not excluded as an asset in your IVA then yes your creditors can insist on a 50/50 split, you will need your IP's permission to sell I would assume as there will be a restriction on the land registry with you being in an IVA.
Would you be able to continue your IVA payments once you are in a new property? if your current home is an asset in the IVA then the creditors will be expecting your share of the equity anyway (50%) which is about £6k on top of the rest of your payments for the remaining 3 years @ £223 a month, which comes to a total of £14k or thereabouts, I guess the key is what you can afford with your IVA moving forward, if you then aren't going to be in a position to continue to pay towards it you have more of a bargaining tool for them to accept a much lower amount as a F&F
Shane I'm new here also. Been looking at this forum for weeks and wanted to help for as long. I'm lucky. I have finished an IVA but I don't want the experience of it to go to waste, especially to those facing what seems a daunting six years. But please have strength. When it is over, the IP has your final payment or your F&F settlement accepted, the very first night's sleep will be the best of your life. Nobody asks for debt to get out of hand but going for IVA takes a lot of soul searching and spirit. My particular IP was Payplan and they were my last hope. Me and my wife made it. Shane, you will too. Best of luck.
Completed IVA - August 2012 pheeeeeeeeeew
Only my opinion - Nothing More Nothing Less
Once an IVA has been accepted by creditors, it can be difficult to argue that an unequal matrimonial settlement can be justified unless it is by specific Court Order rather than mutual consent. However, there is no barrier to you putting whatever offer you like to your creditors - your IP should allow this and you can let them make their own minds up.
Personally, I think that your suggestion is reasonable if you will be left with little or no disposable income once you have moved.
Again thank you for replies, much appreciated. My solicitor has advised that it is unlikely that the court will contend the 60/40 split with my wife so I would guess that this will go through without any hassle so hopefully my creditors will go with it.
I am increasingly concerned with my IP company and their lack of service as they are so difficult to contact, I'm lucky if I receive a reply to my emails and when I do the reply can take weeks, they have 'lost' emails in the past and have totally ignored many of my requests for advice.
Am I allowed to contact my creditiors direct? I feel things are taking far too long due to my IP not assisting me in a reasonable time frame, this is not only frustrating but we could lose the sale of our house if they keep dragging their feet. I feel I should contact my creditors and let them know the situation as this would be quicker and at least I know then that they have been informed.
As I am not happy with the service I am receiving from my IP (and I do not envisage it getting better) is there a governing body that I can express my disatisfaction to?
I have just sent them my complaint but as I don't expect a reply I feel I need to contact someone who can help. I obviously will not mention the company name here in the forum as this would be unprofessional but I just feel quite helpless. I am doing everything I should be doing so as not to lose the house sale but without contact from my IP it is getting quite worrying.
I would concur that a 60/40 split would seem to be reasonable.
It's a shame you don't feel you are getting the best service from your IP. Which firm are you with? If they don't deal with your complaint properly, you may need to take this up with their regulatory body.
Hi Melanie
Thank you for your reply.
I have had a reply email from my IP and it is quite obvious that they haven't read any of my emails and not made a record of my last telephone conversation as the email doesn't acknowledge the points mentioned.
I have already sent an email of complaint and now after this recent email I have now asked for details of their complaints procedure, this is so frustrating.
I am reluctant to name the company here in the forum as I know they have a representative who gives advice here and this would not be fair. I will now await their response.
The email today is now saying all of my proceeds from the sale of the house will be paid into my IVA. If this happens then I may as well go bankrupt, once house is gone then I have nothing else they can take anyway so I feel that if they won't let me have relocation costs bankrupcy might be the best option. Need to think about this now and see what response I receive from them if any.
Thanks again Melanie
Whether you can or not my advice would be to discuss all matters with your IP. They are there to manage your IVA and to you give best advice etc.
As Mel has already stated, if they are not fulfilling their obligations (incluiding timely and clear communications) then refer to them to the appropriate regulatory body
