Full and final settlement IVA

Smiley21

Morning all,

Looking to see others experience of full and final settlement with creditfix. I have been in my IVA since March, paying £150pm for 5 years but with property clause. My property has no equity and will have none in 5years also. My job changed decrease of 5k a year and bills increased April, I have done a new I & E and I have £57 left a month. Creditfix have reduced the payments by 15% and will need a meeting to go lower. I have offered a full and final settlement from 3rd party to settle at £8,000 it would of been £10150 including extar 12 months if it stayed the same. What's the likelihood of this being accepted based on the change of circumstances? Also if its not accepted will they just say to carry on IVA and reduce allowance for food or something? TIA original debt level 50K and I'm a single parent on shared ownership so losing my home is what in avoiding.

sourcrates

Your arrangement has not been running all that long, if you had been in year 4, then I would say, yes, you have a strong likelihood of that being accepted, but after only 5 months, well, it`s anyone's guess really.

Creditors won`t actually have been paid any dividend as yet, your first few months payments go towards the fee`s associated with your IVA, and it`s setting up and supervision.

The creditors won`t usually get any disbursement until years 2/3 maybe even later.

So they won`t have been paid a penny as yet, so I don`t know what your IP will say about this, I expect they will put it to your creditors and you`ll have to wait and see.

Smiley21

Thank you! I appreciate that it's very early on and my circumstances are far from ideal. I think the IP want to put my offer forward as they have asked for all relevant docs, evidence etc. Obviously I will carry on paying if not as cant have this fail, just worry me when mortgage will go to variable rate in 2years time I'll be stuck but I guess if they say no I can try again in few years if mum is still willing to gift. 

sourcrates

Creditors will always look at these things in terms of what gives them the greatest return.

If they think they can get more out of you by reducing your payments, then that`s what they will do.

If on the other hand, they believe what you are offering represents the best return, then they will accept that.

It all boils down to profit and loss.

Smiley21

Thank you sourcrates. I will wait and see what they say, meeting hasn't been set yet I've just had various departments asking for info so far. 

Smiley21

Hello, I wanted to post an update. My meeting is set for Friday 10am, I put in offer of 8k my IP reached out yesterday to say the creditors thought the offer was low and asked for 8500 and this will be accepted. If I kept paying 127pm for another 53 months plus 12mth because I own home then 300 in fees for meeting 8500k is pretty much it all (for IVA debt level was 47k) I will comment once approved and keep you posted on time scales. This forum helped me so want to try help others with my story. My advice so far is, if thinking of full and final via gift, do a recent income and expenditure to show you can't afford current payments. Mine was originally 150pm reduced by standard 15% but my disposable income due to bills is now £60 

Smiley21

Hey! 
Just wanted to update you. My variation meeting was adjourned to following week as wanting to give creditors more time to vote. I am pleased to say it was accepted on 15th Sep with 100% approval  for £8500. This was paid next day and I'm just waiting for my case to be closed. Told the 3-6momths wait. Having only been in the IVA since March I'm feeling so relieved and have actually been able to sleep. I work in sales so the thought of being able to keep the commission for myself to save etc is amazing. Will update on the final time scale etc. But huge thank you to this forum as I wouldn't of been able to do it without you all! 

MrFrugalFever

Congrats. Although your credit files will still retain your IVA until 6 years from the start date, you'll be free from the legal shackles that exist within an IVA agreement, meaning that you get to keep your additional earnings etc.

I think your mum is owed a very, very big hug!

Smiley21

Morning all, I just wanted to update you. I received my completion certificate and final report on the 16th Feb. Took 5months in total. I have sent it to the 3 main credit agency's. I took my IVA out in March 23 due to owning a house and in 47K debt. I was fortunate that my mum gifted me 8,500 to settle the IVA 5years early. Want to say a huge thank you to this forum as in my darkest of places the comments and advice settled me.

Xohayz

Hello, I am thinking of doing exactly the same thing did you get charged a fee from credit fix?