Hi,

Looking for some advice regarding an IVA. Long story cut short, had substantial loan /credit card payments each month, girlfriend was working, quit work due to becoming pregnant (unplanned) and now we’re living on one wage. Cut down to a single car, cut out all un-necessary spending, living to a strict budget and been consulting with CCCs.Current debt (all in my name – occurred before meeting my partner) was under some control, however due to reduction in income, unable to meet monthly obligations.

Debt value is £32000 – one creditor whom was totally un-reasonable regarding reduced payment plan has issued CCJ. CCCs has now recommended IVA. I’m in the process of setting this up, however since this has started, which has taken nearly 6 weeks already my partners dad has basically flipped his lid over the whole matter, as its now come to his attention and has offered a lump sum of £6000.

He’s basically told me to offer this into a lump sum payment and see if many of the debts can be written off.What are my options with a £6000 cash sum towards £32000 worth of debt? I cannot afford to repay the debt so would creditors except a reduced cash settlement in an IVA?I’m waiting for CCCs to asses if this viable, however wondering if I’d be better of calling creditors and seeing if they’d except a cash settlement.…

Many thanks...

I'm really sorry for the poor formatting of the first post.Somehow when I attempt to put the whole post into structured paragraphs it doesn't work..

edit - wokring it out, you need to use HTML paragraph tags..!! Erm ok, anyhow hopefully easier to read now, many thanks.

Hi Iv-techmanGoing from the figures you have provided above, the dividend would roughly be 18p/£ (for every pound you owe, the creditor would get 18p back) however this is not taking into account the IP fee's on the IVA. After fee's of say for example £1850 for nominee fee and £1500 for Supervisor fee it is possible that the overall dividend could be below 10p/£ which is a low dividend in the eyes of the creditors. What would work in your favour is if you were to have no disposable income to offer to your creditors as they would then see it as that is all that they would be able to get from you. If you did have a disposable income then the IVA proposal could be modified by your creditors which could mean that whatever disposable income you have must be contributed into the IVA for 5 years (unless modified by creditors)so to increase the overall dividend avaliable to creditors.No licensed IP will do an IVA without a fee due to the work that is put into drafting your proposal and also looking after the IVA after the acceptance meeting. I would advise that you speak to a debt helpline such as Debt Free Direct or National Debt help line who will provide you with free advice and will normally help you decide which is the best course of action. **Please bare in mind that I am training in debt advice and there may be many other options that are available to you**

Have you considered bankruptcy? Or do you have too many assets? Might be a way to a clean start if not.

Hi,

 

Looking for some advice regarding an IVA. Long story cut short, had substantial loan /credit card payments each month, girlfriend was working, quit work due to becoming pregnant (unplanned) and now we’re living on one wage. Cut down to a single car, cut out all un-necessary spending, living to a strict budget and been consulting with CCCs.Current debt (all in my name – occurred before meeting my partner) was under some control, however due to reduction in income, unable to meet monthly obligations.

 

Debt value is £32000 – one creditor whom was totally un-reasonable regarding reduced payment plan has issued CCJ. CCCs has now recommended IVA. I’m in the process of setting this up, however since this has started, which has taken nearly 6 weeks already my partners dad has basically flipped his lid over the whole matter, as its now come to his attention and has offered a lump sum of £6000.

 

He’s basically told me to offer this into a lump sum payment and see if many of the debts can be written off.What are my options with a £6000 cash sum towards £32000 worth of debt? I cannot afford to repay the debt so would creditors except a reduced cash settlement in an IVA?I’m waiting for CCCs to asses if this viable, however wondering if I’d be better of calling creditors and seeing if they’d except a cash settlement.…

 

Many thanks...

Hi

As another poster has put, have you been fully advised on all your options including bankruptcy?

On the full & final settlement issue, below is a useful fact sheet from National Debtline that may help

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers

More info on your overall circumstances needed really to help further.

With all debt solutions you really need to fully understand anything you enter into or sign up to especially an IVA and even more so if you own your home in my opinion.

Might also be worth looking through the Nat Debtline & CAB links below

http://mymoney.nedcab.org.uk/moneyadvice/

https://www.mymoneysteps.org/

Always best to be absolutely sure

Best wishes

Have you considered bankruptcy? Or do you have too many assets? Might be a way to a clean start if not.

Hi,I have, wasn't too sure about surplus cash each month, as courts could decide to make my pay this for up to three years even after being discharged.Managed to now get lump sum funds up to £8500 - currently not paying creditors any payments apart from CCJ in hope they'll accept full and final offer - but still going ahead wth IVA its now in draft stages with CCCS.Wish I had £32000 - I'd just pay them all and never take another loan as long as I live - learnt my lesson in regards to credit. sadly my partner wants to buy a house, so she is keen for all debts to be gone quickly as possible and for me to start trying to repair my credit file...firstly though, I need to get my debts gone, and currently have £8500 to repay £32000. Written to all creditors offering them equal share of £8500 - so far all have refused offer.