I’m in the process of applying for an Iva through stepchange , we’ve gone over my income and expenditure and I’m looking at around £89 per month . This equates to a fairly low 7p / £ but was told this still can work and the low amount is down to the fact I’m out of work for health reasons and income is only through PIP.
Anyway , my wife’s grandparents have offered to give me up to £7000 to offer as a lump sum full and final payment only , I’ve seen other posts regarding full and final payment can be under what you would pay over the full term but was wondering whether anyone can advise if I should just offer the whole £7k considering my monthly payments would be fairly low and maybe this would make the lump sum more appealing ? I just don’t want to take more money than necessary but still want the lump sum accepted .
If this is a possibility I would propose a "lump sum IVA" at the outset, rather than a 5 / 6 year monthly payment arrangement. This would apear to be a more attractive option, as a payment based only on PIP is on shaky ground in the first place and likely to fail anyway!
If you go in at £5k the creditors will be getting the same as they would have been with monthly payments (allowing for admin savings). Speak to Stepchange (or, indeed, a different firm) and discuss the possibility -- do not mention that you would have up to £7k available as they will simply tell you to offer the lot.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Great thanks , that what I thought would happen if I spoke to advisor about this , that they would just say offer the lot!
I’m basically at the point where I’ve just sent all my documentation off to the advisor to look at after having an initial appointment so I’ll call them up and ask to proceed with a lump sum rather than monthly .
Interesting , the advisor I’ve spoken to so far was quite confident in the monthly Iva working , based upon my wife’s income supporting all the bills etc .
Debt is around 50k and I have no assets , waiting on a call back to organise a lump sum being put forward instead now .
A lump sum has more chance of being accepted than a monthly payment, that is for sure.
My own question would then be, given that you have large debts, no assets and are solely reliant on State Benefits for income, why don't you just go Bankrupt? £680 is a lot less to pay than a lump sum?
Regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
size5 wrote:A lump sum has more chance of being accepted than a monthly payment, that is for sure.
My own question would then be, given that you have large debts, no assets and are solely reliant on State Benefits for income, why don't you just go Bankrupt? £680 is a lot less to pay than a lump sum?
Regards.
Has Stepchange explored this option with you ?
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
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
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
