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Posted: Tue Mar 03, 2015 10:54 pm
by Timbo14
I am currently 18 months into my IVA. My original debt was just over £39000, and over the term of the IVA, I am due to pay back around £16, 800.
I have just had my house valued, and have a large amount of equity in it, and I'm happy to sell the house. I have spoke to Freeman Jones today and they inform me that I have around £37,500 outstanding.
This can be covered by the equity and will leave an amount over for relocation, fees etc.
I would like advice on whether I can make a full and final offer based on that figure, considering that it would finish the IVA 3.5 years early and get the creditors a large amount of money back? Or will they just demand the whole lot?
Thanks.
Posted: Wed Mar 04, 2015 1:46 am
by luluj
You can offer the full amount of equity that will provide a larger return to creditors - I would hope they would look favourably on this
Posted: Wed Mar 04, 2015 7:54 am
by Foggy
If you are willing to sell the house I would approach the creditors with a lower offer. If they refuse simply state that you won't sell and they can wait for another few years for less money.
Posted: Wed Mar 04, 2015 10:57 am
by Timbo14
I was looking at somewhere in the region of £25-£28000 to hopefully tempt them.
Posted: Wed Mar 04, 2015 11:31 am
by Foggy
I would say that was worth a shot.
If you sell up anyway, they WILL want the lot. But if you are, as far as they are concerned, selling up just to conclude the IVA early, and won't sell if the offer is refused, then they have to consider whether to get a larger lump now, or wait out the full term for less return.
Posted: Wed Mar 04, 2015 11:38 am
by Foggy
Just a thought ... remember to couch the offer in terms that, if refused or if the house doesn't sell within a given time frame, the IVA will continue as before.
Posted: Wed Mar 04, 2015 11:42 am
by Timbo14
Thanks Foggy. That is the plan. I can see out the term of the IVA if they won't accept, so makes sense for them I guess.
Posted: Wed Mar 04, 2015 12:01 pm
by Michael Peoples
You could also look at raising money from a secured loan as full and final. If creditors accept this then the IVA can be closed down and you can then sell. The maximum loan to value for secured loans is around 80% I think which would leave 20% of the equity for you.
Just a thought but these offers are usually accepted.
Posted: Wed Mar 04, 2015 12:07 pm
by Timbo14
Hi Michael
How would a secured loan work? Sorry I'm a bit ignorant in terms of these things!
Posted: Wed Mar 04, 2015 12:14 pm
by Michael Peoples
You get a secured loan offer which is only made on the condition that it is accepted as a full and final settlement. A meeting is called and if approved the funds are paid to the IP and your IVA closed down. The loan repayments can only be a maximum of 50% of your IVA payments so the amount raised depends on age and other factors.
We have had a few clients close their IVAs down with secured loans and none have been rejected by creditors. Certainly worth considering if you cannot raise funds from family as it is clean and quite common. Once through and the file closes you can sell and move on.
Contact Shaun Vickery from Select who has access to these type of products and he can explain a lot more.
Posted: Wed Mar 04, 2015 12:25 pm
by Timbo14
Thank you. Is there a website I can look at for select?
Posted: Wed Mar 04, 2015 12:36 pm
by Michael Peoples
http://www.iva.co.uk/forum/pop_profile. ... y&id=22837
This is Shaun's profile. If you click on this it will give you the links to wherever you need to go. Best of luck with it and let us know how you get on.
Posted: Fri Mar 06, 2015 10:58 am
by Sarah Jolly
Hi Timbo14
Sorry for the delay in responding to you, I can see you've already received some good advice.
If we can help by talking you through your options please don't hesitate to let us know.
I hope this helps.