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Posted: Wed Jul 04, 2007 8:13 pm
by Debt Monkey
Imagine this, original IVA proposal was to pay £540 a month for 60 months and equity release in year 4. When the proposal was done house was valued at approximately £140,000 with a £129,000 mortgage.

We have been paying £540 for twelve months and therefore repaid £6,480 of the original £32,400 agreed in the proposal on debts of £100,000. Our annual review has just been done and next month our payments will increase to £900 due to increases in income.

What if, lets say some kind (brave)family member offered to take out an unsecured loan of £25,000 and I offered this in full and final settlement. Effectively I could settle my IVA and instead of paying £900 a month for my IVA for the next 4 years pay a family member less than £900 to cover the loan instead.

I guess I am clutching at straws and just dreaming of an IVA free life! Also will my creditors already know that we will be paying £900 from now on and in which case will not accept such a low offer?

DM

Posted: Wed Jul 04, 2007 10:25 pm
by MelanieGiles
How do you equate £25,000 now with the £43,200 you will pay over the next four years plus the equity release? The maths don't add up to me. Your IP is duty bound to explain to creditors that your disposable income is now £900, so I am sure your suggestion will not be recommended.

Why such a large jump in income. This is very unusual!

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