Full and final advice please

scared-sick

I am considering making a full and final offer on my IVA.
Do i have to do this in a specific way like you do if you are on a DMP or do i just talk to my IP Company about the offer?

Also if they refuse as its too low, would they tell me what they would accept or not?

longtermplanner

The offer has to be put forward by your IP company to your creditors, you can't do it directly.

You only started your IVA a few months ago, what has changed? Has a relative offered you money for a F&F?

Is there a reason why you are struggling with the IVA payments: has your income reduced or do you think your expenses were underestimated?

Do you have a house with equity in it? How much?

Making a F&F in an IVA isn't really like a DMP. There your creditors didn't know a lot about you and so are often glad to settle for what they can get. But now in an IVA, your creditors know if you have a house with equity and know a lot more about your situation. As a result, they may not be inclined to accept a low offer unless your situation has really changed.

If you say what your total debt it, what you are paying each month and what you are hoping to settle for, we could make some guesses.

scared-sick

Hi,
Yes you are right, i have only been in my IVA for a few months.
My job is putting me under a load of stress and pressure with no light at the end of the tunnel. To this end my only option is to change jobs.
At present my IVA is perfectly manageable for me however, in changing jobs i am looking at having to retrain for a new career. This means taking a substantial pay cut.
If i change jobs it will be unlikely i will be able to afford the iva.
At long last, i have finally gone to my family for help. They know how bad my job is making me and know i need to get out.
My sister has now offered me some money to try and help me. I am just worried it wont be enough.

There is little equity in my home.
My IVA was for a total of £6,600 and i will have paid £600 into it.
My sister has offered me her life savings of £5000 which will be my offer.
What do you think?

longtermplanner

Sorry, but if your sister's life savings are just 5k, I don't think you should dream of taking them. This is your problem, not hers. You don't know what will happen to her life over the next few years.

If there is very little equity in your house then you should probably consider bankruptcy as an option.

scared-sick

longtermplanner wrote: »

Sorry, but if your sister's life savings are just 5k, I don't think you should dream of taking them. This is your problem, not hers. You don't know what will happen to her life over the next few years.

If there is very little equity in your house then you should probably consider bankruptcy as an option.

Sorry, the life savings bit was just a figure of speech. I didnt mean i was literally taking her last penny. I just meant she has saved throughout her life as opposed to me who hasnt.
Bankruptcy is not an option.
But you are right about one thing, its my problem not hers. I shouldnt have asked for help and i have just told her to forget about the whole thing. I never normally ask anyone for help and i shouldnt have done it this time either.
Thanks for reminding me.

longtermplanner

Why is bankruptcy not an option? Are you concerned about your job? Many more people are worried about this than actually need to be...

longtermplanner

The time to possibly ask family for help is when your IVA is on the point of failing. Get to the point where your income has fallen and you have taken a 6 months break from payments and at that point your creditors will be more responsive to a lower offer to complete the IVA than they are at the moment where there seems to them to be no reason why you can't continue.

scared-sick

longtermplanner wrote: »

The time to possibly ask family for help is when your IVA is on the point of failing. Get to the point where your income has fallen and you have taken a 6 months break from payments and at that point your creditors will be more responsive to a lower offer to complete the IVA than they are at the moment where there seems to them to be no reason why you can't continue.

The reason was because my current job is making me ill and i was looking at retraining. This would mean a paycut. That would then make the iva unaffordable.
I would not just go and take a lower paid job and then get into trouble and let the iva fail. The idea was to deal with it as best i can in order to box it off and be able to move on and get another job.

There is a small bit of equity in my house and its our home besides which, rent is the equivelant to my mortgage so i wouldnt be gaining anything.