Help please asap 16 July 2015 at 4:00PM edited 30 November -1 at 1:00AM in IVA & DRO 4 replies 1.5K views

chirpychick

So we have been in our IVA since Dec 2010, never missed a payment.
We were asked to apply for a remortgage as we have equity in the house but we couldn't get a remortgage and as it wasn't a claus in our contract we refused to take out a loan.
All of this was accepted in May and it was agreed we would go on to complete a 6th and final year instead.

However, my brother in law passed away very suddenly right at the end of March and my Mother in law just inherited some money.

Our monthly payments are £550.01 so over the next 16 months (taking into consideration that 1st August payment will go ahead as normal) they would get £8,800.16

We have planned to offer £8,900 as a full and final payment (I am very aware this is £100 more than what they would be getting if we completely the full 6 years).

We have a call with PP at 5 and now my husband is having major doubts as he is petrified the creditors could vote us bankrupt instead of accepting the F&F payment.

Because if they could get their hands on our equity they could recoup 100% of what we owe and after these 4.5 years that is still approx 25-30k. (we will have paid back over half of what our total was in the beginning).

So now he is freaking out that we and our 2 year old could be made homeless.

What do we do?? Im so confused. I just want to cry because i thought we might finally be escaping this awful situation.

DorisTrousers

Never liked the way that this issue comes across to IVA clients, and Payplan seem to be the worst for putting the frighteners on people, albeit probably unintentionally.

You are panicking over very little, if they refuse the full and final, and they are hardly likely to as clearly it is in their best interests to get the money sooner rather than later, then they will just have to wait the 16 months out.

Technically, it is a possibility I suppose, but in 16 years I have never once seen them vote to BR someone where they are being offered a full and final which equates to what they would have got by waiting it out. The I.P. will get 15% of the lump sum, or maybe the % on yours is different, but they would have got 15% (or whatever the % is) of the monthly payments, so creditors will not be out of pocket at all, bar the costs of a meeting, which shouldn't be very much in the grand scheme of things.

If you are panicking that much though, it may be worth just seeing out the 16 months, that way you have absolute peace of mind.

debtfree2016

Hi ChirpyChick


I think they would favour the F&F, considering its £100 more and you will continue to pay into for the next 3 months (as this is how long it takes) you would be overpaying by 3 x £550 + £100.

chirpychick

We ended up not progressing with F&F as advised by them as our equity is more than the F&F (despite us being unable to release it) and they said that it is significant enough that the creditors might force bankruptcy. So we decided to not go ahead with it.

only 17 more payments to go!

debtfree2016

Sorry to hear that chirpychick, just think of it as how far you have come not how far you need to go.