question re IVAs and full and final settlements

saltpot

Hi

just a query- looling into 5 year IVAs at moment. Also considering full and final ' one off' IVA- would this latter option be better than trying to negotiate individual settlements with creditors? Owe about £30,000

How would ' one off' IVA be calculated?
Thanks

Charco_2

A one off IVA is basically where the debtor cannot commit to a long term payment plan (due to a lack of income for example) but where the debtor can get their hands on a significant lump sum (through a friends or family, or large savings of their own, or the sale of a significant asset).

The idea us that the debtor cannot repay their debts (they are insolvent) but this lump sum is the best they can do right now (and for the foreseeable future!)

You can of course approach your creditors individually to propose this idea but they might not all accept. They might all want differing amounts. They may only offer you figures that your money won't stretch to. If you go through an IP, you can offer the figure you can afford (rather try to afford a figure they give you), also only 75% of your creditors need to agree and the rest are bound by it!

pauls77

Hi

About 9 years ago, when IVA's were costly and pretty uncommon i owed about £55k of unsecured cards and loans... was 24 at the time.. In that time of running up the debt since i was 18, never once was a payment missed of anything.
Anyway so it got to the point with the interest and payments i was paying 2-2.5k a month, and only earning £600 a month, was using credit to pay credit...
I realised that i cant keep going so i contact a Insolvancy Practioner and basically told her what i can pay.
I quit my low paying job, i said that i have £15000 and that i will split that to all the companies, think around .24 in the pound or so, then add on the IP fees and thats it...
The IP contacted the companies and said that all he has and if you want it there are some conditions that all of it must be completed within the next 2 months and no further contact from the day of completion. And we said either take it or get nothing... the IP said we would go bankrupt and have no income so you'll basically get nothing.
We had the meeting thing where no creditors turned up as expected as most of the time they cant be bothered and that was it. 2 months later my IVA was finished, and all i had 2 do is wait 6 years for my credit to fix itself although you have to keep on it and clear everything you can asap.

So for me it worked out well to pay a lump sum and walk away...

As far a guilt that some people may feel, i at no point ever ever had guilt, although i had no family to consider like some do, i would look at it as although nobody made me sign up for credit, nor did any1 but ME spend what wasnt mine in a way knowing i wouldnt really beable to pay it back.. these companies make alot of money, thats business, and i think nowadays more and more people go down this route, and if it wasnt reconised then why change the length of IVAs from years and years to just 1?
If your not helping yourself nowadays then no1 else is going to...