www.iva.co.uk

Before I approach my IP, I wonder if anyone could give me a little advice please?

My circumstances have changed in the last month where I was made redundant from a job that I had only been eight weeks into. Because I had not been there long enough I only received two weeks pay plus holiday pay. I have been living off this since plus a little temp work.

Although I am doing a little temp work, which does not pay anywhere near what I was earning, I have still not managed to even secure an interview let alone another job, this is despite going back to college for three years and doing the AAT qualification!

For those of you who know about my journey, my husband is self employed and this past couple of months has been dreadful on the work front. Very little is around for him too.

Well here deems my dilema. I spoke to a colleague of my IP when I was first made redundant who suggested that we could take a 12 month payment break whilst we get back on our feet. This is a good plan should we require it.

However, a family member has said they would give us the money for a full and final offer but what is deemed an acceptable offer?

We are just in the process of our three year review so we can see light at the end of the tunnel but I don't want to do a 12 month payment break when an offer could be possible.

We have approx £12,000 to pay over the next two years from an initial debt of around £54,000. We also have the equity release clause.

We have had some ups and downs and are currently taking a 15% reduction in our payments because of our lack of earnings, this has been ongoing for over a year now.

If we were to offer say £8,000 would this be a fair offer?

Any help and advice is greatly appreciated.

Hi

I think 8k sounds a fair offer given the change in your circumstances.
Do you have equity in your property at the moment ?

Regards

Hi Andy

Our house was valued at around £77k 3 yrs ago. To be honest prices have not increased but if there was equity doubtful if it could be released.

Regards

Missyp - is there an equity payment mentioned in your proposal after the 5 years?
All we did was work out the remaining monthly payments, including the equity, but took off a couple of months in view of how long it would take to get approved.

Made a typo house is worth £177k.

The proposal mentions equity release in year 4. Have not seen any figures but will look more closely.

Equity might affect the figures as, if there is any to be released, and you cannot release it, the creditors will be expecting a further 12 months payments. This is assuming this is how it is to be dealt with, as detailed in your proposal.

What is the outstanding mortgage and any secured loans ?

Made a typo house is worth £177k.

The proposal mentions equity release in year 4. Have not seen any figures but will look more closely.

Hi Foggy, well if that's what creditors will expect then there isn't any point in arranging a full and final offer as it isn't going to solve anything. We are still going to be paying into the IVA.

The mortgage outstanding is £167k and there are no secured loans. We're on interest only and have been since we bought it 8 yrs ago. We had the house valued when we started the IVA and it was worth around £177k but house prices haven't changed and due to lack of money house is in desperate need of redecoration.

I spoke to a friend who is a financial advisor and he said its very unlikely I would be allowed to release any equity and doesn't know anyone who has in recent months, even with a clean credit history.

Yeah -- there is virtually no chance of releasing equity. But, given your change in circumstances, there is still every reason to run a F&F past your IP. Let's face it ... if you can't manage the next 2 years, a third is certainly on a hiding to nothing!