www.iva.co.uk

Hi,

I have 17 months to go until my IVA is cleared, I pay £451 per month and at the current rate I will have paid just over £7600 when complete.

My parents have said they would be prepared give me £5,500.000 if it would help to end my IVA early. Do you think this would be a reasonable offer to my creditors to pay them off so I'd be free from my IVA..? Is this figure in the right ballpark..?

Or should I ask my Payplan to provide me with a figure..?

Thoughts and suggestions welcome thanks!

S

Hi Steve, to reach as near as the original dividend the better, are you struggling with your current payments?

I've been in my IVA for nearly 6 years now ( I had to reduce payments in the past due to income changes and my IVA was extended) so I guess my parents just thought they'd help me get clear a bit earlier.

My next payment is due soon and reading through the other settlement posts, I see this process can take a little while, I would have most likely have paid another 2 payments thus owing £6,700 approx, this would make their £5,500 only £1.200 short then...

In my opinion and I'm a long way from being knowledgeable in respect of IVA's it looks like a good offer, it might be worth putting this to your IP and asking Mum and Dad to write a letter saying the funds are available for the purpose of the Full and Final offer only etc.

Wishing you all the best. x

Thanks for taking the time to reply Lesley, appreciated.

S

Hi Steve - what generous and supportive parents you have!

I would say this sounds a very resonsable F&F offer to make and you should discuss with Payplan to ensure they are happy to put forward which they definitely should do. Are your parents offering this on the condition you then make your payments to them to repay the sum offered. This would then remove your current disposable income as the creditors may believe you could offer a lump sum and continue to pay which I'm sure is not the intention.

Best of luck with it and let us know how you get on.

regards,

Hi Tina,

Thanks for your reply.

My parents have offered to pay it as, they want me and my family to be clear of debt, as I've been in the IVA for over 6 years now...and to be honest it's getting me down a bit recently...

Last year after my in/out review my payments were increased and the end date stayed the same...so I guess (as was talking to my mum about this recently) they've decided to offer me a possible way out...

I can definitely say that if I have to continue making payments after making a settlement payment my parents wouldn't even offer it in the first place.. their offer is clear me of my outstanding debt once and for all....


S

Earlier today I requested clarification on this matter from Payplan.
I’ve just got this reply….


With regard to the full and final offer, the process is as follows:-

You have £7689.43 remaining to pay so it is your choice what you feel you wish to offer the creditors as a full and final payment, however I have been advised that obviously the more your offer the better chance you have of the creditors accepting full and final payment for instance in your case between £8000 and £9000.
You would still need to continuing making your monthly payments as we would need to convene a meeting with the creditors that takes around 8 weeks.

WHY would I want to pay more as an offer to settle earlier..????? (Offer plus 1-3 payments as usual), I haven’t spoke to my parents yet as I know they will just say sorry son we’re not going to do that, they were only offering me £5,500 in the first place...

I now feel really depressed…..

S

Hi Steve

I suggest the crucial phrase here is "it is your choice what you feel you wish to offer the creditors." The creditors will make the final decision not Payplan.

Your offer seems very good, I'd go for it. You might want to request a payment break in the interim whilst your F&F is prepared and presented.

Hi Steve, Lord Soth is right the creditors make the final decision, put the offer forward and the worst they can do is decline this....does it cost you for a F&F to be put forward, I've never looked into it as I'm not at a point where I could now offer a F&F and definitely not in the immediate future.

I really hope this goes well for you, chin up we're all here to support you. x

Thanks for the replies people....

For the record, should my offer £5,500 be accepted and I make the usual payments whilst this process takes place ie. 6-8 weeks (which would be minimum of 2 payments) I would pay my creditors approx 83% of what would paid to them if I continued with with my normal payments for the next 17 months.

It sounds very long to prepare a variation. It only takes ourselves a couple of days so go back to PayPlan and ask them why it is to take so long.

The variation would include receipts and payments up to the date of drafting and would include no extra payments afterwards so the longer it takes Payplan to draft the variation the more it is costing you.

It does not take that long to draft a full IVA document so I am baffled why it takes this length of time for a simple variation.

Thanks Michael, I will. My case officer was on leave when I made my initial enquiry about making an offer, hopefully they will be able to clarify the reasons for this delay...

Do you think my offer of £5,500 plus September's payment (due on the 4th) would be in the right -ball-park..? if they were to speed up the process..?

I've submitted my offer of £5,500 to Payplan - awaiting response back as to what needs to happen now....

Good luck Steve, let us know how you get on.