www.iva.co.uk

Have been advised that my situation would be 'solved' best by IVA but with savings of some £16,000 should I pay off one or two of my largest creditors OR should this rapidly dwindling investment be made available to my IC for general distribution to creditors? In an IVA would my creditors know of these savings??

Hi bob and welcome to the Forum.

What is your total debt? If you post that on here, then one of the experts can help you.

I would have thought though that you might struggle to get an IVA with savings of that amount.

Bob,

If you pay of your bigger creditors then this can be seen as a preference, by prefering a creitor this will jepordise the chances of an IVA.

As you can imagine the other creidtors would not be happy with getting xx p in the £ back when another creditor gets paid in full.

I would suggest you speak with your IP and chuck the £16k into the pot to be distrubted to all other creditors on a pro rata basis.

Carl

Hello and welcome,.

There are so many imponderables here that you really need to seek advice directly from a professional, please visit www.iva.com and have a look arouund, read the reviews etc.

It is to be assumed that your £16000 savings in no way cover your debt total?

Regards.

Total debt £100k+ but good joint net income which would give about £700/£800 per month for repayments AFTER payment of Mortgage and oyther essentials. Could I just give the savings of £16,000 to my kids and not mention it (or at least all of it??)

You have the makings of a good IVA offer there Bob, which would give you a permanent solution to your difficulties and not a temporary one. Of course your savings would have to be paid over to creditors, but at least you would have the benefit of negotiated affordable repayments into the future - and an exit route at the five year point.

It is certaintly worth having a chat with an insolvency practitioner to see what all of your options are, and identifying the advantages, disadvantages and implications of each one.

there is a bit of a loop hole with iva`s i have read somewhere someone had savings of 20k they gave the money to a 3rd party. Then entered into an iva paid it for 1 year then offered the funds that the third party had been looking after to finish with a final payment.

[:0] jails are busy at the moment!!!!

i wouldnt advise this method bob have you any equity in you home?
because they will want this aswell as monthly payments.depending on the equity and if you could remortgage you would be able to use the 16k and equity and offer a full and final settlement.

upthecreak, that's terrible. It just abuses the system and to be honest would probably be found out as you have to give your bank statements in to your IP.

Hi
We do not discuss debt avoidance or the hiding of assets on this forum,simply because we believe in total honesty and transparency when it comes to dealing with unaffordable debts
Regards

Whoops!!!!!!.....sorry Andy...point taken!

[:D]

Admin, more spammers I think? [:(]

thanks Kazzy..[:)]
admin