www.iva.co.uk

We are currently 20 months into an IVA, with DFD paying £452/month. Approx 8 months ago we were approached by Hampton Trust offering us a way of paying a lump sum (by remortgaging)to get us out of the IVA prematurely. We have been approved for a remortgage the offer is in place. However the creditors meeting took place last Friday and one of the majority creditors (Eversheds) has rejected the offer, their justification is, at present they will receive 52p/£1 of the original debt, with our offer they would only receive 45p/£1, therefore we are back to square one. I have calculated a shortfall of approx £3k. We have gone back with a further offer of the lump sum (£16k) plus continued contributions of £250/month for 12 months.

They have rejected this offer. DFD are reluctant to tell us exactly what offer we should make, so can you help? Is there a way out? Should I call Eversheds direct and negotiate, or are we stuck with this IVA?

Please help.

Before I can answer this, I need to know whether your property was already included in the IVA, i.e. were you obliged to remortgage it in the 4th or last year of the IVA to paorvide extra funds in addition to making the monthly payments ?

Philip Beck - www.freeivaadvice.co.uk

Licensed Insolvency Practitioner and IVA specialist

Can I ask what costs you have paid in arranging the remortgage offer ?
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

IPs who go in with lower offers than was originally offered always run the risk of rejection - and to be frank, the fact that you then offered a further lump sum has probably got Eversheds backs up.

Is there a financial reason for your wanting to make an early settlement? Or do you just want to end the IVA early? I rather suspect that you are subject to a final year equity release, and if this is the case creditors are not favourable to early settlements - as they could get the benefit of ongoing payments plus an equity release at a later stage.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

Hampton Trust are one of these 'cost reduction consultants' that prey on people in IVA's, they search the Insolvency Register and make these ridiculous claims that they can end IVA's early, how can these 'amateurs' be allowed to undermine the good work done by professional Insolvency Practitioners who put together the best returns possible to creditors, they are building up peoples hopes and causing unecessary heartache as in the case of 'gavin.k'.
In the last 9 months I have received approaches from 4 different 'cost reduction consultants', the best place for their literature is the bin, perhaps there should be a section of this Forum where these dubious characters can be named and shamed [:(!][:(!]

Hi
I have asked Gavin to forward the letter onto myself with this in mind
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp