IVA full and final settlement

[whiskeredbattleaxe]

Re: IVA full and final settlement

Thanks Cetelco, thank goodness for you!!

Firstly, let me apologise if I need evrything explained to me about 10 times and in the terms of a three year old!!! (thePhoenix and Xena will concur, I'm blonde and can't help it honestly)

Just to clarify, Nat West applied for the ccj before they agreed to the iva. In saying yes to the iva they were accepting around 46% of their share (around 57%) of around 33k. Which is considerably less than the 19K in the ccj. The ccj allowed them to negotiate more in the iva than my original proposal. The offer I am now proposing is better than the iva but less than the ccj. But I don't think they can revert to the ccj if I have an iva as this supercedes it. Which is why I'm a bit reluctant to rock the boat with the iva, despite the catalogue of schoolboy errors. I'm really scared that the court may order me to pay more than the iva.

Payplan filled in the admission form and sent it back to me to sign. I have signed and sent back the iva document but have not signed the form for the restriction order. The reason I didn't sign it was because they had left it blank and I told them I was uncomfortable about this, since I had no idea what I was signing to and it involved something as important as the equity release in my home.

If I go through Payplan with regards to the offer, there is no motivation for them to prioritise setting up the variation meeting is there, since they won't get their fee if I go down this route.

But if I don't go through Payplan does this mean I am in breach of my IVA and what are the implications of this?

[whiskeredbattleaxe]

Re: IVA full and final settlement

In terms of applying to get the ccj set aside, do I have to apply to the court or through Nat West?

[Guest]

Re: IVA full and final settlement

Are you certain that the IVA is valid? If it is not then you will not be rocking the boat by attempting to make any changes now.

When did NatWest agree to the IVA and thereby to the reduced sum? (Reduced in relation to the sum secured by way of a CCJ)

If NatWest agreed to the IVA and agreed to accept 57% of what they were owed, why did they not, at that point, apply to set aside their claim?

In order to set aside the CCJ you will need to file an N244 Application Notice at the Court. If you do wish to do this and are not sure what to do, then ask and we can help you.

[whiskeredbattleaxe]

Re: IVA full and final settlement

[quote=Cetelco;40564]Are you certain that the IVA is valid?

No, because of the anomalies that I noticed last night, and because I haven't signed the restriction order. I am waiting for Payplan's solicitors to fill in the restriction order and send to me for signature. I was away with work this week and there is a msg on my phone to contact them, which I'll do in the morning.

[Guest]

Re: IVA full and final settlement

I would suggest that you look long and hard at the options open to you. In particular as you have been offered funds with which to make full and final settlement offers to your creditors which are, albeit modestly, in excess of the sum they will receive under the IVA.

If you are not bound by any agreement with Payplan or have not yet legally entered an IVA then it is my suggestion that you have nothing further to do with them.

If you wrote to each of your creditors and offered them a lump sum and pointed out that not only is this higher than the total they will receive from you via Payplan but also that they will receive it at once, instead of over 60 months, then I doubt that any of them would object. In particular as they have already agreed to a lesser sum paid over sixty months.

That only leaves NatWest and the CCJ.

It is my opinion that you could quite easily have the CCJ set aside and then you simply make the same offer to NatWest - how could they refuse?

Under the arrangements with Payplan, they are set to receive 46p in the pound - under your own private arrangement they will receive 50p in the pound.

The only risk is that you fail to set aside the CCJ, in which case you are no worse off than you are now, you simply agree to pay them in accordance with the IVA and they get less money and they wait 60 months before they receive it all. However, given that NatWest have subsequently agreed to the IVA, how can they now attempt to rely on the CCJ?

[whiskeredbattleaxe]

Re: IVA full and final settlement

NW agreed to the iva on 20th dec, with their 100s of modifications. Payplan have the ccj so I'm not sure of the exact date, but it was isometime in november.

Irwin Mitchell (Nat West's solicitors) said they never received it in writing from Payplan that I was applying for an iva but I told them myself verbally on the phone and asked Payplan to write to them, which they assured me they would do. This has been an ongoing thing since I started with Payplan, that NW say they haven't received something from Payplan, who say they've sent it. It's hard to know who to believe, but the other creditors haven't had any problems.

Quote: If NatWest agreed to the IVA and agreed to accept 57% of what they were owed, why did they not, at that point, apply to set aside their claim? Quote

I don't know, maybe they did. Payplan said not to worry about it as the iva would supercede the ccj. Maybe I need to contact Irwin Mitchell in the morning to find out what has happened with regard to this, I just assumed they sorted it out. As for my credit rating, Payplan said it wouldn't make any difference as my credit rating would be shot to pieces for the next few years anyway due to the iva, and the ccj would not make things worse. Does anyone know if this is true?

[whiskeredbattleaxe]

Re: IVA full and final settlement

My first payment throught the ccj was due in jan- I haven't paid them anything and have not received any correspondence so hopefully that might mean it has been set aside...

[Guest]

Re: IVA full and final settlement

If it had been set aside, you would know as the court would have advised you of this.

I would call or preferably write to Irwin Mitchell and have them confirm that, due to the impending IVA they will apply to set aside the CCJ and in the meantime, take no action on it. Once they have complied with that request, you make them the offer. If they don't like it, they would have to issue a new claim, which you could defend as they have already agreed to accept 46p in the pound under the IVA, so how can they refuse an offer of 50p?

Do make sure that it is set aside and that NatWest are not at liberty to restore it however. This is why it really should be done in writing only.

[whiskeredbattleaxe]

Re: IVA full and final settlement

OK, blimey I didn't realise they could still enforce the ccj once you have entered an iva, Payplan had me believe this wasn't the case.

[Guest]

Re: IVA full and final settlement

If you do as is suggested above and pay all the creditors with cash that you are able to borrow, then you would not be in an IVA will you - unless I am missing something here?

[whiskeredbattleaxe]

Re: IVA full and final settlement

How could NW expect me to pay £150 per month for the ccj when I am already expected to pay £377 per month into my iva? Surely it's either one or the other?

[Guest]

Re: IVA full and final settlement

I would guess that part of the £377 per month is made up of a contribution towards NatWest.
The point I was making is that, if you choose not to enter an IVA and borrow the money to pay every creditor off, outside of an IVA and outside of Payplan, then NatWest could fall back on the CCJ if you do not have it set aside.

[whiskeredbattleaxe]

Re: IVA full and final settlement

My understanding was that by sticking with the iva, even if I break it by offering a full + final settlement, but do it through my insolvency practitioner in the formal way through a variation agreement meeting, then I am somehow "protected" from the ccj.

The iva was approved by an agency called the insolvency exchange, the ccj was done by Irwin Mitchell solicitors.

[Guest]

Re: IVA full and final settlement

As long as you make payments under the IVA the CCJ should not be enforced. In your case however, you are proposing to make a lump sum offer to your creditors using the premise that under an IVA you are able to repay your debt for less than the full balance. This means that, although the debt is paid under the IVA, the CCJ is not fully satisfied, although, if you stuck to the terms of the IVA, no enforcement of the CCJ should be carried out.

If you do it this way however, despite paying a lump sum, the CCJ will remain on your credit report for the full 6 years from the date it was registered either in or out of an IVA.

If you take the other option, that is to set aside the CCJ and then privately offer each creditor a sum over that which they would have received via the IVA and all at once instead of over 60 months, then your credit report will show nothing adverse - at least relating to this CCJ or the IVA, as neither would exist.

[whiskeredbattleaxe]

Re: IVA full and final settlement

I would guess that part of the £377 per month is made up of a contribution towards NatWest.
The point I was making is that, if you choose not to enter an IVA and borrow the money to pay every creditor off, outside of an IVA and outside of Payplan, then NatWest could fall back on the CCJ if you do not have it set aside.

I am definately going to apply to get it set aside and will do this tomorrow. As for the settlement offer I have been thinking about 2 possible courses of action:

Option 1) Apply to get the ccj set aside and offer a full + final settlement through PayPlan
or
Option 2) Apply to get the ccj set aside and offer a full + final settlement to each creditor individually.

There are pros and cons to each option, as outlined below:
Option 1: Through Payplan
Pro's:
1.This may be quicker and easier because it will (I think) be one variation meeting when I will get either a yes or a no from all my creditors, rather than having to deal with each one separately. I am a full-time working mum in the process of trying to apply for a new job, so any saved admin time is a huge bonus.
2.The decision will I think be made by the Insolvency Exchange who will compare my offer to the IVA, rather than the ccj. I'm not sure whether this department would be aware of the ccj or not. If they're not this may be in my favour.
3. I am not sure about this but think I may possibly be protected from the ccj if I stay within the iva process, even if I'm not technically making payments into the iva.
4. I can say in the letter that the offer is only available on the condition that I am freed from the iva.

Cons:
1. Based on my experience PayPlan may mess things up.
2. Based on the offer I will make this is not lucrative for Payplan so will they put my best case forward?

Option 2: Contact creditors myself
Pros:
1. At least I can be confident that I have my own best interests at heart
2. I can be sure I do it straight away, rather than rely on other people
Cons:
1. If leaving the iva means the ccj rears its ugly head and I can't get it set aside then I will end up paying much more than has been agreed in the iva and for much longer.

Alternatively there is always Option 3: Write to Payplan and to the creditors as well.

Sorry for the duplication, this is just helping me to get my thoughts together. Thank you for being so helpful and so patient with me, I am struggling a bit today