www.iva.co.uk

Hi,

I am new to the site and was wondering if someone could help me?

I am currently in a IAV which has been running just over a year now and I am currently in my yearly review. There is a possibility that my parents will be coming into some money shortly and have offered a possible lump sum payment to finish my IVA. What I need to know is if this is actually possible since my IVA has only been running just over 12 months?
Also what figure would be deemed as a reasonable offer? I am currently paying £530 a month with a dividend of 45p/£. So with 12 months payments plus about 5 months payments at £410 I was paying Synergi before my IVA started I have paid about £8000 into my IVA. With £530 x 60 months equalling £31800 would my offer have to be more, the same or less then the difference between what I have paid and what will be paid at the end of my IVA?

My parents where looking around the 15-18K mark but this is obviously lower than what would be paid overall.

Any help or advice is much appreciated.

Thanks.

Hi
I presume that you do not have an equity release clause and are not a homeowner.
There will be a saving on IP fees,so the 31.8k that you were to pay in can be reduced by approx 4k in saved fees,this leaves 27.8k,less the payments made of 8k you will need to offer 20k to return the original dividend as it is unlikely that your creditors will accept less.
Just two other points
1]The five payments that you paid Synergi pre IVA,are you sure that they are going towards your IVA as Synergi have had bad press on this forum with similar cases.

2]Most IVAs have a clause that no variation meetings are allowed in the first 24 months,so check your chairmans report for this clause.
Regards

Hi Andy,

Thank you for your reply.

You are correct I am not a homeowner; I actually live with my parents at the moment. So if I aim for the 20k mark that should hopefully be accepted.

Regarding the payments I made to Synergi, I had to make 2 initial payments of £405 and then further payments of £410. It actually took them over 8 months to sort out my IVA. I started the process in April 2006 and my IVA as approved in Jan 07. I was told that they would be taken as payments towards my IVA and to be applied at end so in would actually be less than 60 months. It sounds like it might be worth me talking to them about this again if they are not that reliable?

I did check the Chairman’s report and my IVA proposal and there is no indication of a time frame or minimum period before a settlement could be offered. It just stats that the IVA will run for 60 months unless a settlement is offered and accepted.

Once again thank you for you help.

Hi there

You definately need to check up on what is happening with those up front payments, as it would be very unusual for 8 months worth of money to be treated as contributions. This should have been disclosed as cash in hand on your proposal, and then you would have been required to pay 60 monthly payments. That probably seems harsh, but no-one should have to pay for 8 months before an IVA is presented for them.

Putting this behind you, it would appear that you have a good case for a variation, and I wish you all the best with this.