What would you do?....

[one month at a time]

I have been posting on here about advise on releasing equity from our house, we are in our iva for 16 months and understand that we have approx £100k equity, I have spoke with my IP and they have agreed to call a creditors meeting and offer them 70k as full and final settlement, I have just been offered a new mortgage of £275 fixed for 2 years for £1500 per month at a rate 7.05% my question is this good. We are currently paying £1000 mortgage and our iva will soon be £600 per month, written in is that we have to over 75% equity in our 4th year, so I think I am doing the right thing, but wouls d appreciate any comments or suggestions from anyone - Thanks

one month at a time!

[MelanieGiles]

Hi there

You really need to bounce this off your IP, as he/she has detailed knowledge of your case, and it would be wrong for anyone on the forum to give guidance on such an important area.

I feel that your rate of 7.05% is very high, and would recommend that you try one or two other brokers to see if a better deal could be found.

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

[Adam Davies]

Well I,ll take a plunge and say this.
If you were to wait and run your IVA to term then you may well have to release 70k then,under the fourth year equity release.So if you can get an agreement to end your IVA now with a 70k offer then it must make sense.
As Melanie states make sure that your IP has discussed this in detail with you.
regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[MelanieGiles]

Andy

In today's climate, it is very unlikely that creditors will accept a full and final settlement derived from an included asset, if there is no reason for the IVA to be concluded early. Creditors are now actually starting to study variation reports, and this means that this procedure must not be used as a get out early option, but as a method of addressing changes in circumstances.

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

[Adam Davies]

Melanie
Quote " I have spoke with my IP and they have agreed to call a creditors meeting and offer them 70k as full and final settlement "
Why does the IP agree to this ? Maybe there is a change in circumstance and maybe the creditors will be happy to have the money earlier.
regards


Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[willalwaysreply]

Quick Question

Why is Melanie classed as a forum expert ?

[Storm]

I would say because she is an expert in her field as demonstrated by both the qualifications she holds, her knowledge and experience demonstrated.

Why do you ask ???

[MelanieGiles]

Andy

You are correct that there may have been a change in the debtor's circumstances, but the post does not make this clear - and I suspect it would have done if there had been an issue. Perhaps the original poster could make this clear so that we may understand his case a little better.

My point - as an IP with extensive experience of managing IVA's for the benefit of the last poster - is that creditors are increasingly not accepting full and final offers which are put forward by debtors who simply wish to conclude their IVA early. Some IPs may not be aware of this - and at the end of the day the decision is not the IPs but the creditors.

From the creditors point of view, who have the benefit of the next three years of property appreciation (and accepted the counter risk of devaluation) and ongoing monthly contributions, there is a risk that this will not be viewed as a commercial settlement.

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

[Adam Davies]

Hi
Lets stop these silly questions.
Melanie is a hugely respected IP,not only on this forum but in the industry.She answers questions by giving her own time up and the last few days has received some unfair comments.
I will remove any posts from new members that ask ridiculous questions or make comments that are offensive.
regards


Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[willalwaysreply]

The reason I ask re Melanie,

Is that I question the replies to my own posts ?

[MelanieGiles]

Presumably you are referring to your post about feeling like hiding an investment and "creating" disposable income!

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

[zoe]

What is it with the forum at the moment????
Experts are so called because of experiences that they have had! You can certainly see from the number of posts, the quality of advice and the time and effort Melanie puts in that she is very committed to helping people here.
I personally found the advice given here and also as Melanie was my IP gave me the strength to go on. I think if you have had a problem with anything anyone has said is to take it up with them not publically question their expertise!
Z

Zoe
x
Keep your chin up - everything happens for a reason!
View my blog http://zoes.blogs.iva.co.uk/

[smr]

Hi

Not wanting to jump on the bandwaggon - but I also find the advice from Melanie extremley useful and informative. She gives honest, straightforward advice and information - perhaps not the answers people are hoping for, but she shouldn't be critisised for offering advice to help.
SMR

[thebear29uk]

I'll just add my two penneth

Melanie has been an absolute godsend to this forum. When I first posted last year Melanie wasn't even a member. She has been a member for exactly 6 months and in that time she has posted the equivalent of 600 replies a month. I have been a member since last Nov and I consider myself quite active on the forum yet this will be my 223rd post in total.

Melanie tells it how it is. She won't sugar it up and give false hope because she has built both a reputation and a good working relationship with the people within the IVA industry. She knows a lot of the decision makers and what they will find acceptable and what is not acceptable.

I agree with smr that maybe some people don't like what they hear and in willalwaysreply's case I read all the threads and can honestly say that you misinterpreted Melanies replies. She can only give generalisations without knowing the full facts and her final reply suggested you arranged a face-to-face meeting with an IP locally to discuss the case fully. What's wrong with that?

And just to even the recommendation score. Willalwaysreply is fairly new here and probably won't have followed Sensible77's situation. To recap Payplan suggested he put forward an IVA offering 30p in the £ when his main creditor was HSBC and it was widely accepted in the industry that HSBC would not accept less than 40p in the £. Melanie pointed this out on more than one occasion but Payplan assured Sensible77 it would be okay. Needless to say it was rejected although it eventually went through with a 40p dividend. So Payplan are not this wonderful company and Melanie the bad guy.

A little perspective please.

Dave

[tracy.h]

Well said Dave you as always make so much sense.

Tracy