www.iva.co.uk

Hi, Due to circumstances out of my control I entered a IVA last April, Owing £13,571 IVA £7,200 repayments of £100 per month for next 6 yrs. I am a home owner recently just lost my job. My family are willing to help me out with the IVA . What figure should I realistically offer debt free direct for a settlement figure.

Many Thanks

You will need to offer close to what the expected repayments would have been over the term of the IVA (circa £7,200)

As amn alternative you could invoke to payment break provisions in the hope that you find replacement employment within that period. Depending on the terms of your own arrangement, you can probably take a break of up to six months of your IVA is presented in accordance with the IVA protocol.

Thanks for the advice Melanie and NickJohn. Up to now I have continued with payments using my savings to keep payments up to date. Can you offer any advice on what route to go down to offer a full settlement. My family are willing to gift me with funds to offer DFD a payment to end this. I just have no idea how to approach the situation. The debt that DFD collect from me is £100 pm, I have made 11 payment up to now. Original debt was £13,571 I am paying DFD £7,271 for 6 yrs. The whole situation has me a nervous wreck. Any advise would be most appreciated. Thank you

Hi rae57. Welcome to the forum. Assuming you will have paid in £1200 by the end of this month, £6k would be the balance of payments remaining. If you could offer close to that amount, given your circumstances, you stand a good chance, especially if you may struggle to find work. Also, ensure they know the 3rd party funds are only available for a full and final settlement. Good luck with that and securing future employment. x

Many Thanks GilliB, Appreciate any help. Hate been in this situation,plus don't like the thought of having to remortgage my property, not that I stand a chance with been unemployed. I have learnt one valuable lesson never think your job is safe and 2 never spend beyond your means... Hope your health improves x

Is your IVA running 6 years due to an equity clause? if so check what the value of your equity is, if it is under £5k and looks like being that way for some time then you may get away with making an offer equivalent to 5 years in total not 6. The reason for this is that if at the end of 5 years you have less than £5k equity then your IVA finishes then anyway..

Yes there is a clause regarding property.They have my home valued at £90k couple of houses recently gone up for sale £60k and £65k same size property as mine,I currently owe £46k.

It looks like you will have more than £5k equity then so will have to be nearer the 6 years offer..

My family can gift me the sum of £6.5k. Been looking through paper work have no idea whom the supervisor is, going to email them today with a proposal for a f&f as well as writing to them. I understand I need written verification from family member who is offering the gift along with a written statement as to why I would like to make a f&f. Thank you for the advice its much appreciated

When you contact them make sure you make it clear that it is a one time offer, also detail the reason why, e.g. redundancy, sickness etc.. best of luck..

Seems reasonable to me. I would support that level of offer if I were acting for you.