just completed 3 years of my IVA

[jamesfalla]

Hazel

It is quite normal practice to settle an IVA early with money from a third party. As Melanie says, this would normally be positioned as a loan from the 3rd party.

The proposal is then put to the creditors such that it is understood that the lump sum is in full and final settlement of the IVA and any ongoing disposable income you have would not be available as it would be required to repay the loan to the 3rd party.



James Falla

Expert in IVA, Bankruptcy and informal Debt Management solutions for over 10 years.

For more information visit www.jamesfalla.com and visit my blog at: http://jamesfalla.blogs.iva.co.uk

[hazel.k]

Thanks guys for all your replies. I have now asked my Supervisor for a full and final settlement figure to pay off my creditors once and for all. I'll let you know how I get on.

Thanks again.

[hazel.k]

Hi guys

I've just heard back from my IP on what they propose that I pay for my full and final settlement figure and it is almost £50,000 i.e. the total outstanding original debt (100p in the £). I am somewhat shocked about this though. I had assumed that if I paid off what I would pay if I continued my IVA for a further 2 years (i.e. £12k) then they would be satisfied with that, especially if I said it was a loan and I was paying it back at the same rate. I am so confused now as I feel that I was backed into a corner to do an IVA in the first place as bankruptcy would have been a better option for me (as I had absolutely no assets etc). At the time I was desperate and didn't know what to do and my IP said it was my choice but implied that I would find it hard in the future if I went down the bankruptcy route! What should I do now? There is no way my boyfriend could lend me the £50k anyway and this is now making me ill!!!

[aguise]

Hi Hazel did you tell the ip that it was a loan from your boyfriend and that you would have to pay it back.

Ang

[MelanieGiles]

Your IP should be basing the early settlement on the number of outstanding contributions you have left to pay, less his outstanding and future fees. Can you ask him for the basis of his decision, and confirm more details about your IVA - how much do you owe in total, how much have you paid in so far, how much are the IP fees, what are you paying each month.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[hazel.k]

I have 24 contributions left to make at £515 per month so have just over £12k to pay off. I have paid in just over £18k so far. Not too sure about the IP fees though - will have to check. The original debt was just over £58k.

[Adam Davies]

Hi
At the end of the day its not your IPs decision !!
It,s your creditors,so tell your IP that you are proposing a 12k full and final and that it is loan from family and that you are going to use your disposible income to pay back the family member.
Where has the common sense gone regarding your IPs response,does make you wonder if they are thinking of their fees first.
regards

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

[hazel.k]

Thanks for your reply Andy. I rang up the help desk yesterday (as the website was down) and they basically told me the same thing. I am writing my letter today so will let you know how I get on.

Regards

[tracy.h]

Goodluck with this Hazel i agree with Andy,i really hope you can move forward and complete an early settlement,keep posting,let us no how you are getting on

[hazel.k]

Hi everyone

After taking some advice (from the IVA helpdesk no less), I am ready go make an offer to my creditors in full and final settlement. One thing though - do I still need to pay the full fees quoted or is there a reduction due to paying my IVA off two years early?

Nominees fees were £2,500 plus VAT
Supervisor's fees were £4,500 plus Vat

I spoke to a very unhelpful chap at my IP's office (I will tell you who when my offer has been accepted) and said he couldn't say at the moment and I was to just make an offer which he will look at and if he thought it was acceptable, he would show it to the creditors.

[Adam Davies]

Hi
Its that type of service,or lack of it,that so needs changing in this industry.You are afterall the customer !!
There should be a reduction in fees but they will also charge for a variation meeting,so don,t bank on much of a saving.
Please keep us informed
Regards

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

[hazel.k]

Indeed and I am and paying for the privilege to boot!!

I would have thought the fees should be reduced pro rata but am prepared to pay the full fees just to get rid to be quite honest. I am also going to offer 36p in the £ back (which was the original proposal amount) - should this be enough or should I be offering more?

I have also been quoted £50 for the variation meeting though which seems reasonable.

[hazel.k]

Hi everyone

Just to let you know that my IVA has now been paid off (with a loan from a family friend). I actually made a bank to bank transfer to Deft Free Direct on 31 July.

Can you tell me how long it will take for them to acknowledge my payment and also when it will disappear off the insolvency register and I get my certificate of completion.

When I last spoke to someone at DFD (I tried to speak to my IP himself but was told that he was now far too important to speak to me and I had to speak to one of his staff) I was told that it could be up to three months as they had to double check if there were any other creditors that could come out of the woodwork before they would close the matter. Its been 3 1/2 years since I started my IVA so I would have have thought that all creditors were now "in the bag".

Any advice would be appreciated.

Many thanks.

[MelanieGiles]

The work this firm refer to should have been done already. If you have paid over the money to them, there should be no reason why this matter cannot be concluded within days. In my practive we always try and combine the Chairman's Report of the variation meeting with a final report - issuing dividend cheques and closing the case.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[hazel.k]

Thanks Melanie

That's what I thought. So should I be getting my certificate of completion through shortly. I have just checked on the insolvency website and my name is still on there.