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Offering a settlement to end an IVA
Giljay
Posts: 6 Forumite
Hi,
First time to post so please make allowances!
My sister started an IVA through a firm of solicitors nearly two years ago. She pays £388 a month - £80 a month admin and £308 to her creditors -and whilst doesn't complain finds that she has now got to the stage where she can't afford to replace clothes, leaves off the heating etc. I have now offered to lend her money to clear the IVA but don't know how much to offer to clear the debt. On my calculation in the next three years she would have paid the creditors £11088 but the max I could lend is £7000. Is it worth making an offer? I am afraid the creditors will just want the £7000 and the £308 pm until clear? Could this happen? What is the procedure?
Many Thanks
First time to post so please make allowances!
My sister started an IVA through a firm of solicitors nearly two years ago. She pays £388 a month - £80 a month admin and £308 to her creditors -and whilst doesn't complain finds that she has now got to the stage where she can't afford to replace clothes, leaves off the heating etc. I have now offered to lend her money to clear the IVA but don't know how much to offer to clear the debt. On my calculation in the next three years she would have paid the creditors £11088 but the max I could lend is £7000. Is it worth making an offer? I am afraid the creditors will just want the £7000 and the £308 pm until clear? Could this happen? What is the procedure?
Many Thanks
0
Comments
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Hi there,
It's certainly worth exploring. The best thing to do would be for your sister to approach her Insolvancy Practitioner to se whether they could help offer a lump sum into the IVA acting as a settlement. It's important that she makes it clear that the money offered is to be offered as a settlement and not simply taking off a chunk of the debt. I'm sure her IP could give advise regarding this.
Regards
CCCSI am a Debt Counsellor that works for the CCCS and have specific permission from Martin, to post on these boards to try and help those in debt. Read more information on the CCCS and what it does in the Debt Problems: What to do and where to get help article.
CCCS is a registered charity, and there is no charge whatsoever for any of the services we provide to our clients. We take great pride in offering first class help and advice, but we only offer this where we have been able to fully explore and understand your circumstances with you. We want to help you understand these choices and their possible implications but not make them for you.0 -
Hi,
Thanks for that Matthew. I will advise her to do as you suggest.
Many Thanks0 -
Its very important you dont give her the money until an early settlement has been agreed in writing.Debt as at 12th July 2006 - £61,345 :eek: :eek: :eek:
Debt free 21st Oct 2011.
All thanks to :money:0 -
I am worried about that. I will ensure that that is the agreement she gets before I do anything. Just wonder if £7000 will settle it.
Many Thanks0 -
Just wonder if £7000 will settle it. Many Thanks
You will Never know unless you ask - good luck. :beer:I am NOT, nor do I profess to be, a Qualified Debt Adviser. I have made MANY mistakes and have OFTEN been the unwitting victim of the the shamefull tactics of the Financial Industry.
If any of my experiences, or the knowledge that I have gained from those experiences, can help anyone who finds themselves in similar circumstances, then my experiences have not been in vain.
HMRC Bankruptcy Statistic - 26th October 2006 - 23rd April 2007 BCSC Member No. 7
DFW Nerd # 166 PROUD TO BE DEALING WITH MY DEBTS0 -
Thanks - we can but try! Just don't want to raise her hopes - she has been through enough.0
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Hi,
Just to let you know the IP said minimum is £10,000 so the struggle continues...
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Hi,
Just to let you know the IP said minimum is £10,000 so the struggle continues...
Sorry to hear that Gj - I'm surprised that he wasn't at all interested. I am NOT, nor do I profess to be, a Qualified Debt Adviser. I have made MANY mistakes and have OFTEN been the unwitting victim of the the shamefull tactics of the Financial Industry.
If any of my experiences, or the knowledge that I have gained from those experiences, can help anyone who finds themselves in similar circumstances, then my experiences have not been in vain.
HMRC Bankruptcy Statistic - 26th October 2006 - 23rd April 2007 BCSC Member No. 7
DFW Nerd # 166 PROUD TO BE DEALING WITH MY DEBTS0
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