F & F Help Please

mrsskinto

Hi All,

I'm after some help please, myself and OH been in IVA since Aug08 paying £440 per month over 72months.

when Its comes to August this year Im going to see if I can finish the IVA, Its a living nightmare, our marraige is suffering I have depression, I could go on but wont bore you all.

I have never told anybody about our situation, but was going to ask my parents to loan us the money.

I have paid in £2000 in overpayments to, I was thinking of asking to borrow £12K. Do you think the creditors would laugh at this?? :eek:

Thanks

Charco_2

Start at the beginning... You're in a 72 months IVA so i'll hazard a guess that Northern Rock are a creditor? You have your mortgage with them and a secured loan and it's been moved onto Interest Only!?

Just a guess... doesn't matter too much.

The facts so far:

- Your 18/19/20months into a 72 month IVA.
- You've paid in roughly £8,500? Correct?
- You've also paid in an extra £2,000 why?
- Your remaining 52/53/54 months will see you pay in a further £22,880 roughly.
(- you want to settle after 24months having paid in £10,560 and with £21,120 outstanding)

WHY do you want to settle you IVA early?
(And don't tell your creditors that it's because it's a nightmare)

Your marriage is suffering... you could split up and the IVA would fail as you would no-longer be "Interlocking and Mutually reliant", your expenses would rise and your disposable income would fall. You are suffering from depression and your ability to work is suffering as a result so your income is likely to fall also affecting your ability to pay your debts.

You don't have much to offer but a relative is willing to help you out... about £10k would be a decent starting point (maybe even a little less), worst case scenario is that your offer is rejected and you simply keep paying your current repayments - make another offer a few months later!

Why wait until August though? Why not start now? Ask mum anyway!

mrsskinto

thanks so much for your reply.

We dont have a mortgage, but yes it was extended because of Northern Rock. All our debt was unsecured. Looking back maybe bankruptcy was a better option.

I just thought maybe after paying two years of contributions perhaps creditors might look on it more favourably.

The extra 2k has come from overtime payments. I just thought an offer of 12k wouldnt even be considered,

Another question please, would my parents have to get involved with it because ideally i would like to ask them to loan us the money without them ever finding out about the iva.

thanks for your help

Charco_2

No reason to involve your parents really.

Your creditors will simply want to know where the money is coming from because they'll want to know that it's "instead" money, not money they should be receiving anyway! (Like your hubby had a really good run at Cheltenham last week and you can now afford a £10k lump sum... you would have to pay the lump sum anyway!)

It's like Deal or No Deal except you don't have to listen to Noel Edmunds!

Over the next four years (from August/September) you'll have to pay out £21,120 roughly. Take off 15% for IPs fees (which is roughly what the creditors allow) so its (21120 x .85 £17,952 which would be in the pot for your creditors - why would they accept anything less?

1. They are going to get the money in quicker
2. You're already struggling with the arrangement:
i) Marrital stress and potential break-up
ii) Lack of security regarding income (depression/time off work)
3. You never know what's around the corner (a bird in the hand is worth two in the bush!)

So it's just a matter of hitting the right figure to push the banker's buttons. I imagine £12k would leave him very happy - but you don't want to do that, you just want to offer enough for him to accept it begrudgingly!

mrsskinto

Hi Charco,

Thankyou for taking the time to reply, i will now take on board the advice you have given and think of a starting offer of 10k and see what happens.
I will do this after the second review.

After my overtime payments the figure outstanding would be approx £16,400 after taking off the IP's fees, so might give us a better chance!!

I really hope they dont want signatures and involement from my parents, I think if they found out they would disown us!

thanks

Max_1066

Hi

I've just gone through a one-off IVA and my 'family' kindly provided the lump sum. If you can, try speaking with your family as you may be pleasantly surprised at how supportive they'll be. I've been very lucky with all my friends and family as they've really helped take some of the pressure off.

BTW my IP did require a signed letter from my family stating that the money was from them and that it was available immediately. I don't know if this is standard practice or not but would be worth checking.

What would your parents think you were using the money for otherwise ?

Just to pick up on Charco's point don't offer too much, just enough. Your IP should be able to advise however they probably still get a % of the settlement so they'll want it to be as high a possible. However given the circumstances you should have a good case. £10k def sounds better than £12k however it depends on your IP and who your creditors are.

Good luck.

p.s. why wait, if the money is available why not approach them sooner ??