IVA question

Allthebest12

Hi,

I am about to enter into an IVA through SC and my creditors meeting is very soon. I have a question which I am struggling to find the answer too.


In my job I can earn commission and also overtime (it's not guaranteed).and I know that anything over the 10% threshold, half needs to go to my IP but my question is, with the other half being mine could I save that up and then use it to make a F&F to my creditors once I have enough to do so?

sourcrates

What is the point of that when you are entering an IVA ? 

It`s not something that would be allowable in insolvency, as you must treat all your creditors the same.

Can I just ask why you have you chosen an IVA, are you a homeowner with £30k of debt or more ?

Allthebest12

What do you mean what is the point of what sorry?

I am entitled to the 50% after my 10% threshold so am I not allowed to save my 50% of up and then offer it as a F&F once I have a substantial enough amount?

if not then what is the point of me being allowed the 50% of any additional income above the 10%?

Yes I am a home owner and yes I have over £30k of debt

Allthebest12

Sorry I meant a F&F to my IP to put to my creditors to end my IVA not ring up an individual creditor and offer them a f&f for their specific loan

Grumpelstiltskin

You do realize there are huge fees to be paid before there is a single penny paid to any of your creditors.

Allthebest12

Grumpelstiltskin said:

You do realize there are huge fees to be paid before there is a single penny paid to any of your creditors.

I do yes but if I was to save up enough to offer 100% of the remaining payments of my IVA, through my 50% of additional earnings, would this be allowed? 

Grumpelstiltskin

Why don't you do a DMP ?

I know it's a large amount you owe but with a DMP there are no fees to pay and you are totally in control of what you pay.

There is always a chance that down the line you can get a reduced amount accepted by creditors.

Be very wary of signing up to an IVA until you fully understand what you are signing up to.

sourcrates

Allthebest12 said:

Sorry I meant a F&F to my IP to put to my creditors to end my IVA not ring up an individual creditor and offer them a f&f for their specific loan

Ah I see, yes understood, I don`t see why not, though I doubt you will be able to save enough to make any effective offers, but who knows.

gd55

It's certainly possible, but as you've already noted, you're likely to need to offer the full amount of remaining payments. I don't think creditors would be as flexible to lower offers as they might if you were in a DMP, as an IVA is a formal arrangement where they have an expectation of more significant and regular payments.

When I did a F&F in the last year of my IVA they wouldn't accept anything less than 100% of what they would have got had I carried on with the same payment arrangement.