IVA f&f offer

Almostfree · 3 August 2017 at 10:12PM

Hi, I wonder if you could advise me.
I've just paid my 46th payment. I'm aware I have a 12 month extension due to higher earnings so there are 26 payments of £100 left.
I shall be starting a degree in September and as it's nursing so won't be working from 6 weeks time. I've spoken to my parents who are willing to offer £1500 as a full and final offer to close the IVA and I can afford 2 more monthly payments so £1700. My IP have already been awarded just over £1700 in PPI (I wasn't even aware I had any). My original agreement would have had £5160 paid in over 5 years, with the current payments, PPI And the settlement it would be £8000 paid in if accepted. My original debt was £11000.
Do you think that this is a fair offer given the decrease in income? My IP suggested the repayments could still be affordable if I claimed tax credits, but the IVA was due to a tax credit overpayment I couldn't afford to repay as I had a car loan from my bank. I'm terrified of even attempting a new claim and would rather not if at all possible given the trouble it caused. Can I be forced to claim tax credits to pay the IVA?
How likely is it that the creditors fill accept the offer to get the payment now rather than risk it failing when I'm not earning?

National_Debtline · 4 August 2017 at 11:59AM

Hi there and welcome to MSE,

Unfortunately, it will be hard to say how likely it is that the IP (and the creditors) will accept your full and final offer, all you can do is put the proposal to them. Outline the offer like you have here, clearly showing what is scheduled to be paid and what your proposal would equate to.

The IP cannot force you to claim tax credits, however, if your full and final proposal is rejected and tax credits are the only way to continue with the monthly IVA payments then you are in a bit of a sticky spot. If you choose not claim them, the payments may become unaffordable, which means your IVA will fail and that could result in bankruptcy action (unlikely if you don't have any assets -but a possibility). You would also lose the benefit of getting any debt written off, and the creditors would be able to chase you again.

IVA's are very inflexible. I would suggest putting your proposal to the IP in writing and trying to get them on side with this arrangement. Fingers crossed they will accept.

Laura
@natdebtline

Almostfree · 4 August 2017 at 2:39PM

Thank you for replying.
I spoke to tax credits office today. I'm less dubious about making a claim if I need to. I'm still making the offer for f+f as advised by my IP, but if it isn't accepted I will claim tax credits and continue for the next year. Hopefully after that my dad could offer to pay any extension so it still concludes after 5 years rather than 6.

IVA f&f offer

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