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Full and final IVA
ES19901990
Posts: 70 Forumite
in IVA & DRO
Hi all, I have done a few posts on DMP’s and feel I now mostly understand them.
Just now looking at other options. I will have a debt total of about £60000 unfortunately. Could I look at a full and final IVA straight away? A family member has indicated they would gift £18000 total if this cleared it with no monthly payments? Is this possible?
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Comments
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You could look at it. But the large CCJ creditor would have a veto over it.0
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ManyWays said:You could look at it. But the large CCJ creditor would have a veto over it.Largest £23000 from British business bank personal loan.
Lloyds CC £10000
Amex CC £8000
M and S CC £7500
Barclays CC £5000
Lloyds Loan £4000
Virgin CC £3000
I would have £18k for a full and final IVA. Could I ask and see if this is accepted and then if it’s not go for a DMP?0 -
Its known as a "lump sum IVA" and would require 75% of your creditors by value of debt to approve it.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter1
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sourcrates said:It’s known as a "lump sum IVA" and would require 75% of your creditors by value of debt to approve it.0
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What are your IVA provider's fees? £6k would leave a 20% offer. £9k would leave a lot less.
The fees have to be paid before the creditors get anything; there's a very recent IVA thread where the OP is paying back nearly the whole debt and the fees.
If you can pay back £3.6k a year on a DMP and have equity, I can't see the creditors going for anything leaving less than 5 times that once fees are paid.
The person who has not made a mistake, has made nothing1 -
RAS said:What are your IVA provider's fees? £6k would leave a 20% offer. £9k would leave a lot less.
The fees have to be paid before the creditors get anything; there's a very recent IVA thread where the OP is paying back nearly the whole debt and the fees.
If you can pay back £3.6k a year on a DMP and have equity, I can't see the creditors going for anything leaving less than 5 times that once fees are paid.
My part of the equity in the house is around £30000 as it is a joint property.
If I could offer this and it was rejected what would be the scenario? Could I then look at a self managed DMP? It would take 25 years on a DMP at £200PCM.0 -
Does anyone know if this would be a possibility?0
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No one can give you a definitive yes or no answer, anything is possible, its getting the creditors to agree to accept the 18/20k lump sum in full settlement, rather than the alternative, which is a 25 year DMP.
Your job is to sex it up to make them believe that the lump sum IVA represents the very best return available to them, the only alternative otherwise being a 25 year debt management plan.
How you do that is up to you, but the reasons you give them must be phenomenally good and extremely convincing for them to be able to clear it with their bosses, and accept it.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter1 -
sourcrates said:No one can give you a definitive yes or no answer, anything is possible, its getting the creditors to agree to accept the 18/20k lump sum in full settlement, rather than the alternative, which is a 25 year DMP.
Your job is to sex it up to make them believe that the lump sum IVA represents the very best return available to them, the only alternative otherwise being a 25 year debt management plan.
How you do that is up to you, but the reasons you give them must be phenomenally good and extremely convincing for them to be able to clear it with their bosses, and accept it.
Thank you, just need to think of some good reasoning.0
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