www.iva.co.uk

Hi, this is my first post so please bare with me if it is not in the correct area!

I am about to start (or I think I am), an IVA. I currently owe £56k and we are paying £210 per month on a DMP which would take 22 years to pay off!

We are in negative equity to the tune of around £15k and I can't see that changing enough over 5/6 years to make a remortgage viable.

Someone has suggested that they may be able to lend me around £10k to assist me if this would enable a settlement. This works out at about 18 pence in the pound. Does anyone think this is possible or am I being far too optimistic?!

Hello and welcome. An offer of that sort certainly equates to the dividend many offer over 5 years, and might well be attractive to creditors as a lump, rather than dribs and drabs. A lot will depend upon your ability to pay, maybe more,over a full term. But certainly worth considering.

Might I suggest you pop over to www.iva.com and have a word with a few companies listed there and they will discuss all aspects with you.

Best of luck and let us know how you get on.

Welcome from me too....as Foggy has done a grand job of directing you to www.iva.com, I will simply say we are here to support you through your journey at any time. Stay in touch and let us know how you get on.

Thank you folks.

I am having my first interview next week and then I may discuss with one or two others.

I'm guessing that the creditors would get around £2,600 more if I completed the 5 years but that seems like a long time for not a lot more money!

It is possible - personally I would think that more like £12k would be a better level to come in on - it is more or less equyivalent to what creditors would receive over a five year period if you were to make contributions at the monthly rate of £210.

Seems to be taking a long time for you to get to chat with an insolvency practitioner. Most firms ought to be able to speak with you the same day.

Thanks Melanie.

I was hoping that with a lump sum the amount would be lower as I'm not sure I could borrow 12k, but it's early days and I will need to do more homework yet.

I'm speaking to the people Stepchange put me in touch with. I had my first call today and they are following it up with an interview next week. I may well speak to your company too for a different view.

If I can raise either amount, it would be a loan not a gift. Would this be allowed?

I am always happy to give a second opinion, so do gve us a call. It is better for you to show the money as coming in as a loan, as you can then use your disposable income to repay the debt.

I have just had an IVA rejected on the basis that the lump sum being offered did not equate the the equivalent of 60 times the disposable income, so do beware if you put forward something lower. You could always consider making payments for one year, with the lump sum coming in during the year, if your funder were to be prepared to waiv their rights to repayment until the IVA had concluded - ie at the end of that year.

Just had another thought!

I have a car on finance over 4 years, so therefore in year 5 the creditors would be getting the payments I had been making towards that (£288 pm).

Would this effect the lump sum I should offer?

Probably should - if you are wanting to work from the very best playing field.