IVA... Frustrated a little annoyed

Anondebtadvisor

They should not require any information such as bank statements from your mum, only a letter stating that the money is available for the purposes of settling the IVA only and where the money is coming from, for example savings or investments and proof of ID for money laundering checks.

Creditors are not monsters and i am sure that given your circusmtances will see that your offer is an attractive one for them and is in everyones interests to accept it. The creditor gets their money sooner, your IP gets to close the case and you can move on with your life :-) everyone wins!

I have a child with specific needs myself and i understand completley how you feel and that you cannot be expected to leave your LO in childcare just so you can work at no benefit to yourself and the detriment of your child x all the best

Mj1981

Thank you so much, you have made so much more sense and answered questions I've been trying to get them to answer for weeks now.

The offer of the money from mom won't be there forever, so I'm eager to get this sorted as quickly as possible with as less stress and inconvenience to her as we can, obviously her inheritance was more than 4k from my dad so she was a little set back when the IVA company stated they needed to see her bank statements, but now I know this is not needed I will state that moms not willing to send in that information however she has no issues sending in her ID or writing us a letter stating that its a gift and will only be given should the IVA f&f settlement be accepted

Fingers crossed we can get this sorted

techno1029

Sorry to hear about your recent loss but I would like to offer a little advice with regard your F&F having been through this process myself. I too was offered a lifeline of financial help from a relative. I firstly obtained a written valuation of my property to prove there was no equity in the house. I then sent this along with a covering letter with my offer which was slightly less than I would have paid if the IVA went the full term. I also explained this offer was from a relative and explained in detail why my IVA may fail in the future due to my work situation etc. Your creditors should be more than happy with your offer and should also be happy getting the payment outright rather than waiting for the next 3 years with a posiibility of it failing. Mine was accepted with no exceptions. My only problem was it took that long for it all to be processed I was still paying my monthly contributions i ended up paying slightly more than if it had gone full term. I would make haste and get writing... Good Luck. ( my relative did not have to send any financial information. Only a letter stating he was willing to gift me the money and it was solely for paying my IVA only.)

Mj1981

Thanks well after yet again being promised a call back today they have failed to do so (despite 2 emails to them), prob a bit late in the day now but is there any way to do this without involving the IVA company, their customer service attitude are appalling and really starting to pee me off.

Have to say their relaxed attitude and slowness in responding to the possibility of a f&f is starting to worry me somewhat.

Mj1981

Ok they finally got back to me....

here's the math;

we have 38 payments left of the IVA paying £140 per month meaning the creditors are set to get £5,320 (over the next 3 years) by the end of the IVA

We have already paid £6,980 into it and their agreed 'total' that they will get back is £12,258 over the 6 years

We have a lump sum we can offer of £4,500 which we could possibly make up to £5,000 however the IVA company have said we need to offer atleast £6,000 to stand any chance of the creditors accepting this meaning they will be getting 12.5p to the pound, if we offer £5,000 they will only get 11.5p to the pound

She also said that if we state (As we were originally going to do) that should the offer not be accepted the IVA is LIKELY to fail (not that it WILL fail but that its likely it might) she said they can force us to go bankrupt and fail the IVA themselves, how true this is i don't know?

I now have contact details for our IP so i think i will contact him direct later today to discuss this further

Confused.com!

MJ

Anondebtadvisor

Hmmm, i dont agree with what you have been told MJ.

If creditors accept your full and final, this means your IVA will conclude early and as a result the IVA company will not receive fees for the remaining 3 years.

If you can pay £4500 against £5320, this is only a difference of £800 (money which they are thinking would come out of their fees) , baring in mind that by the time they get around to calling a variation meeting you will have made another 2 or 3 payments, taking the difference down to £560 or £420.

The only way the IVA would fail is if you cant make payments going forward for the remainder of the IVA otherwise it would continue as before.

Sounds like you are speaking with an inexperinced member of staff so have a chat with your IP directly

Mj1981

On our IVA paperwork there is a paragraph which reads...

No additional fees are to be charged for any adjournment of creditors meeting, conveying any additional creditors meetings, variations to the arrangement or early settlements of the arrangement.

So does this mean if we put in the f&f offer and it's accepted the full amount of what we are offering goes to the creditors?

Also our annual review last year we changed the payments down a little to the £140 which was accepted by the creditors but our ip requested £400 + VAT as additional remuneration in respect of additional time costs incurred.

Surely if I'm reading it right then that is in breech of the IVA agreement that we signed which states the first paragraph quoted where he cannot take any more fees for making variations to the arrangement?

Mj1981

Sorry for the questions,

There is another paragraph in our paperwork which states

The details of my assets and any security held by creditors over those assets are set out in the attached statement of affairs. I propose that no other assets will be included in the arrangement and propose excluding from the arrangement any property that would be excluded from my bankruptcy estate under the insolvency legislation.

The only 'asset' listed is the house, for which we are in negative equity

Now back to the whole PPI thing, as that's classed as an asset and not a windfall... Does this have any relevance as to what would happen if we were to file a claim for PPI and get any money back or even if we were forced into claiming PPI? I don't think we have any PPI to claim back but once the IVA was sorted we had planned to look into it just to make sure

Anondebtadvisor

Did you have to pay the £400 fee yourselves for that variation?

That clause does seem to say that no further fees will be paid for any variation etc.

The clause that you quote is a specific assets clause, so the only assets that are caputured in your IVA is the property, so unless your IP makes a modification at the variation meeting for your full and final this will not change and any PPI reclaim will be excluded form the IVA.

Just to make things clear, your IP can agree to call the full and final but inculude a clause to state that any PPI will be an asset of the IVA but as it stands at the moment it is not. If they were going to do this i would have thought they would have at the last variation!

Mj1981

No we didn't have to pay the £400 ourselves it would have come out of the contributions we were making/have made, maybe I mis-understood that paragraph,

Maybe that's why they haven't pushed For us to claim PPI as its not actually written in the agreement about any money we would get from that

trying to read through and decipher what everything means is rather confusing, although we read it all thoroughly before it was agreed we didn't actually think we would need to read it all again before the IVA had finished.
I'm waiting on our actual IP ringing me back with regards to the full and final settlement figure so hopefully if we can raise the extra £500 he may think that would stand a chance