www.iva.co.uk

Hi

I did have a question last week regarding full and final settlements and am grateful for the replies. However I have now spoken to the company dealing with my IVA and they have informed me that I would need to offer in the region of £19,000 for a full and final settlement at the end of year 4 to meet the 35p in the £ it had originally been agreed to pay the creditors. On the breakdown sheet they have provided it shows that on payment of the last 12 month contributions we would have paid in £38,056. In our original proposal it had also been put forward that we would pay £9372 in lieu of any equity in the home. However this was amended at the creditors meeting to state that the property would be valued in year 4 and any equity paid into the IVA over 6 months if required. It was also amended to state the failure to pay unsecured non-preferential creditors a minimum of 35p in the £ shall be deemed in default of the agreement, although in the original proposal this was set at 30p in the £. Sorry this is a bit long winded, but I am confused about the Practitioner's fees. I was under the impression that these were taken from the contributions made. If that is the case then we would have complied with the 35p in the £ requested, having paid £38,000 plus at the end of year 5. There is currently no equity in the house. However the amendments could be read to show that the creditors would have to be paid 35p in the £ and then the practitioner's fees would need to be paid on top. This wasn't my understanding of how thie was to be done and would mean we would be expected to pay in teh region of 45p in the £. Can anyone advise?

Hi
The dividend shown would be after IP fees are taken so yes you may well pay in the equivelent of 45p in the £ but this will actually net out at 35p in the £ once fees are deducted
Regards

If you are going for a settlement and there is no equity you could offer less. The variation can remove the requirement for a minimum dividend which was put in probably using an equity calculation. Offer what you can afford based on the payments to be made excluding equity.

Thank you for your advice. Apparently the administrator I spoke to last week is going to speak to my IP to see what can be done, although I haven't heard back yet. We have been offered help by my parents to finish this as they are worried about us being so stressed and poor all the time - like everyone else on here! In addition my husband is currently on redundancy notice, although to date has not been laid off although many of his work colleagues have. However I thought we would need to pay in around 12 months contributions which would total £10,452 so to receive a response stating this would be £19,000 was a bit of a blow. We shall wait and see what they come back with. Again this forum is an invaluable source of information for everyone in our shoes so thank you for your responses.