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Early settlement of IVA?

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45 posts • Page 1 of 51, 2, 3, 4, 5

Early settlement of IVA?

Postby Jules64 » August 16th, 2013, 3:21 pm

Good afternoon,

I would like some advice on the following if possible - I am nearly two and a half years into my IVA and have found out I 'might' be made redundant this year, following a process where I find out the outcome in September. If I do get redundancy, I will leave the organisation early December.

My question/query is - would I be able to make a full and final offer in September and not tell them I am getting made redundant :oops: ?

I can probably get the money from a family member and pay them back in December. I am currently on maternity leave, have 2 children (one 7 weeks old) and would not be able to afford childcare to go back to full time work. I am looking at doing a childcare course later in the year.

Your thoughts would be appreciated
Last edited by Jules64 on August 22nd, 2013, 12:40 pm, edited 1 time in total.
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Re: Early settlement of IVA?

Postby Debtwizard » August 16th, 2013, 4:22 pm

Hello Jules64 and a very warm welcome to the fee free debt help and IVA forum.

It is possible that you may be able to offer a full and final settlement to end your IVA, the creditors often accept such offers provided it is reasonable as they no longer have to wait for the IVA to run its term, so in effect they get their money earlier.

I would talk to your IVA supervisor and explore this further, from what you have said there is no guarantee that you will be made redundant, all I can advise is that you be open and honest with your IVA supervisor and in turn they should help you plan a way forward that is acceptable to both you and your creditors.

How much was the total debt in your IVA and how much are the monthly payments? Do you own a property and if so are you subject to a six year IVA to cover any possible equity?

Best wishes,

Mike
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Re: Early settlement of IVA?

Postby Jules64 » August 16th, 2013, 6:38 pm

Hi Mike,

Thank you for the welcome and for getting back to me.

My original debt was around 34k, I have to pay £229 for 60 months (£13,740) and then I was asked to re-mortgage to raise (I can't remember exact amount) but it was between 12k-16k, or pay for another year. My argument around that time was going to be that my husband has to retire after 30 years and this would be September 2016, so I didn't think we could remortgage if my husband was not working.

I am 99.9% sure I will be made redundant - There are 400 people that do my job and there will only be 60 vacancies! I am part-time with 2 kids and hopefully no-one will want me ;)

Also, so far, because of the IVA a PPI is being made - £1991 has already been paid and I found out yesterday that 5 other companies have said I had PPI and will make payments - these amounts are unknown at the moment. I always told companies I did not need PPI as I worked for the Police and redundancies were unheard of, until now!!!!! Just goes to show how sneaky they are!!!!!

Regards

Jules
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Re: Early settlement of IVA?

Postby Jules64 » August 20th, 2013, 3:26 pm

Can anyone suggest a figure that I should offer?
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Re: Early settlement of IVA?

Postby Debtwizard » August 21st, 2013, 10:09 am

Hello Jules64

It is always difficult to know how much to offer, as a guide work out what the total amount of monthly contributions you will be making, include the extra year to cover any possible equity.

Then look at somewhere between half and two thirds of this amount.

I would also have a chat with your supervisor, if you labour the point that your redundancy is guaranteed then this may put a different perspective on matters, usually with redundancy you get to keep six months net income and the rest goes into the IVA.

Trust this helps.

Best wishes,

Mike
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Re: Early settlement of IVA?

Postby Tina » August 21st, 2013, 10:37 am

Hi Jules - welcome to the forum from me as well :-)

Sorry to read that redundancy may be looming for you but from reading between the lines of your posts it may not be all bad news for you with your plans for a course etc.

I completely agree with Mike to be honest with your IP about this - you should never really withhold important changes from them especially when it involves funds and impacts on your I&E. It is completely understandable why you may want to offer the lump sum asap with redundancy coming up so do not worry about that - as you say the chances are very high you will be, although that said, it is not definite yet.

Your IP is duty bound to put forward whatever you ask them to as long as there is justification for it, which you have. Whatever your family say they can help you with offer that but Mike provides some guidelines, however, do not feel you have to aim for a particular sum. The creditors will decide whether they are happy with it or not and if not your IP can have a conversation to then see what would be acceptable.

Do keep us updated with how things go and best wishes with the new little addition to your family :)
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Re: Early settlement of IVA?

Postby Jules64 » August 22nd, 2013, 12:43 pm

Thank you for the replies.

If I made an offer which was accepted, are they likely to find out that I was made redundant at a later date? I think I can only keep 6 months net of any payout which would not last 5 minutes. I was not planning on making a really low offer, I was thinking of around 15-18k

Jules
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Re: Early settlement of IVA?

Postby Tina » August 22nd, 2013, 2:58 pm

Hi Jules - you will need to justify why you are changing to a full and final offer which is due to expected redundancy action but to answer your question, if your variation is accepted and you are later made redundant and receive a payout there is nothing they can do.
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Re: Early settlement of IVA?

Postby Jules64 » August 22nd, 2013, 4:33 pm

Hi Tina,

Many thanks for your reply. To be honest, childcare is going to hit us big, it is so expensive where I live and my part-time wage wouldn't cover that and bills. My husband is due to retire in 3 years and I know we would be able to get a lump sum from a family member to settle the IVA (hopefully).

I need to look at figures to see how much I still owe. I have been paying for 28 months (@ £229 = £6412) and still have 32 to go (£7328). I have to remortgage at the end of year 5 but my husband leaves work in 2016 so I don't think we would be able to. The IVA can be paid for another year (£2748). As previously stated, there is a PPI going through and they have already received just under 2k and 5-6 other companies still have to pay out. As soon as I know how much these payments will be, I can then sort out a decent settlement figure.

Jules
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Re: Early settlement of IVA?

Postby Tina » August 23rd, 2013, 1:59 pm

Sounds like a good idea Jules and only offer what your family can afford - don't feel pushed into offering a certain amount to appease the creditors. of course it has to be reasonable but with the additional impact of childcare costs your ability to maintain a monthly payment is threatened even more.

I'll watch this space for an update on how you're getting on... :)
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