Full and final settlement options

Anondebtadvisor

How much total debt do you have David-m4?

I have seen F&F IVA's accepted for 7p in the £ but obviously it depends on your circumstances.

If you are in rented accomodation and and have little disosable income a F&F will probably be accepted

Gimpsdad

I wouldn't want to 2nd guess the exact circumstances you face, but the fact that you are considering DRO/IVA at this point hints that you are struggling a little anyway as it is. The key for you here is evidence, as with any IVA. If your overtime is definitely coming to an end, and you can evidence it, then no IP would include it as guaranteed income. 20p is more than enough for a one off, even allowing for the fact that the eventual dividend will be a little lower as creditors will have to forego some of it for the IP to do the work. That doesn't matter so much at this stage, as if creditors vote for it they are bound by their own votes anyway. You have said that you have 40p available, so if creditors did barter you up a little bit then you can cover it, but if the offer is put forward by an IP then that is actually very unlikely to happen. You would need evidence also of what lump sum you have access to.

david_m4

Just under £15k. It is all current now because I'm working overtime, but there are some late payments on my record from last year.

My overtime will end this summer. I don't know the exact date, but it definitely won't become permanent. From that point I won't be able to pay the minimum unless I get another job. I live with my wife in a rented flat. She earns more than I do but all our finances are separate.

I have a relative who will put in some money for a settlement, but no more than £5k tops.

Anondebtadvisor wrote: »

How much total debt do you have David-m4?

I have seen F&F IVA's accepted for 7p in the £ but obviously it depends on your circumstances.

If you are in rented accomodation and and have little disosable income a F&F will probably be accepted

Gimpsdad

Have a chat with a few IP firms, it is also a perfectly reasonable point of view to say that whilst you cannot give an exact date, it is dangerous to rely on overtime that may be stopped at any point, even without a date. Therefore, if you work on basic, the payments cannot be maintained, and it follows from there that you are insolvent and need help.

david_m4

Thanks for all the advice. I think this is my best shot at getting out of the hole, and it's such a relief to know there's an option that won't keep me in limbo for years. Phew.

Just a couple more questions. How long does it normally take to set an IVA up, and am I debt free as soon as that's done? If I do it then get a better job a few weeks later, can anyone come after me for more money? And will doing this count as "insolvency" for a future mortgage application?

Gimpsdad

Typically, it takes 4 to 8 weeks to set up. More than that if there is missing info, less than the 8 weeks if everything needed for an IP is provided straight away, around 5 to 6 weeks.

As soon as the proposal is accepted then an IP may leave the IVA open for a period of, say, 3 months to allow creditors time to submit their final claims of what you owe, but will then be closed. Once accepted, creditors cannot vary the terms.

As for mortgages, if you are asked the question then tell the truth, but as with every mortgage application, the more you have to put down the better.

david_m4

If it takes about 5 months in total, what would happen with interest and charges in that time? Can my IP get them frozen?

Gimpsdad wrote: »

Typically, it takes 4 to 8 weeks to set up. More than that if there is missing info, less than the 8 weeks if everything needed for an IP is provided straight away, around 5 to 6 weeks.

As soon as the proposal is accepted then an IP may leave the IVA open for a period of, say, 3 months to allow creditors time to submit their final claims of what you owe, but will then be closed. Once accepted, creditors cannot vary the terms.

Gimpsdad

It doesn't take 5 months, sorry if my above post isn't as clear as I would like, it takes as little as 4 weeks (except in exceptional circumstances, which probably wouldn't apply to you), it shouldn't take more than 8 weeks, unless there is missing information which has to be chased up.

All interest and charges are frozen once an IVA is accepted. Theoretically, they can charge you what they want in the meantime I suppose, but if it is going to get written off anyway then it doesn't matter.