Hello to all who have taken the time to read this,
My IVA started in DEC 2013 to be for 5 years to pay 7500 at 125 per month. OK two years in I have paid the 3000 plus in this time I've paid an additional 1143 in overtime and tax return so going into my third year...if I continue to pay into 2016 up to September my parents have agreed to pay the balance in full which would be 3450 is still good and will it be accepted I do own a property if that makes a difference but would my creditors accept this offer? I am in process of doing my review with my IP going into this third year, But before they get back to me I would like to hear what others who know about all this and the views opinion is? I so want to finish and get out of this IVA...''
Last edited by Solgar on Tue Jan 12, 2016 6:36 am, edited 1 time in total.
Any offer should reflect a potential 12 months if you have equity which yours seems to reflect so I think it stands a good chance.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
Ok so they if the Iva run it course they would get another 12 months so I would be in it for 6 years so the question the fully amount offer would be for the 5 years, they wouldn't feel they want 6 years worth of monies as a third year complete pay off as I have equity in my property. I hope you understand my question.
Hi Solgar - on assumption you have standard terms if you have more than £5k of equity then the IVA will normally be extended by a further year so when offering a F&F creditors compare it to what they would get. IN your case it sounds like you will be offering 3 years payments in full and final settlement of 4 years contributions if your IVA continued.
By my calculations you would be offering c£4,500 against £6k.
Its a reasonable offer given the IVA would close 4 years early and I would hope that creditors would accept it but there's never any guarantee.
5 year IVA 7500 at 125 per month = 1500 over 5 years
2 years and (9 months on-going) but will be this year Sep for example so total paid will = 4125 as of end of this Sep 2016
A full and final offer of 3,375 to be summitted Sep this year which in effect means IVA ompleted within the end of three years and the total amount of 7500 required over 5 years actually paid in full.
A 5 year IVA completed hopefully by the end of year three, but the complete total of 5 years offered.
Or will they want another 1500 because i have equity in my house ??
thank you
Last edited by Solgar on Tue Jan 12, 2016 1:23 pm, edited 1 time in total.
So if I understand correctly you have 27 months remaining plus 12 months presumed extension = 39 months.
39 x £125 = £4,875 against which you are offering £3,375.
It doesn't matter what you originally estimated creditors would get paid because that's just an estimate and subject to change if circumstances in the IVA change.
A f&f is usually compared to what you would pay in if creditors reject the offer and the IVA continued as normal.
@ Lisa, yes that's correct well my review is in progress as I write my financial situation has not changed so I expect my payments to remain the same. So the offer is a good offer money paid up front by year three....or technically wait three more years, ( turning it into a 6 year IVA) to receive monies with the additional 1500 pounds? I would think they would take the offer unless you tell me otherwise from experience...''
Last edited by Solgar on Wed Jan 13, 2016 7:37 pm, edited 1 time in total.
There's no guarantee I can give you as it simply depends on how the creditors vote on the day sorry. All I can say is I hope they would look favourably on it given it brings an early end to the IVA but that doesn't necessarily men creditors will accept it.
Fingers crossed for you.
Even if they reject you can always put another offer forward again in the future.
so the question the fully amount offer would be for the 5 years, they wouldn't feel they want 6 years worth of monies as a third year complete pay off as I have equity in my property. I hope you understand my question.