IVA full and final settlement

[whiskeredbattleaxe]

Re: IVA full and final settlement

Hello again. Tonight we are in the process of writing full and final settlements to each creditor individually. I was going to wait for the ccj to be set aside, except today I have found out that the minimum pension contribution is 2% at my work, except we are encouraged to pay 5%, which is what the pension is defaulted to when employees start with the company. So I am paying 5%. Under the terms of my iva though, I am only allowed to pay the minimum pension. So this means when I change my pension contribution from 5% to 2% it will free up another approx £100 per month for my creditors. I think this adds about another 6k onto my iva repayment. we can't afford to offer such a high full and final settlement, but really want to settle. the thing is, once my creditors realise that I'm paying more than the minimum into my pension I guess this will make them more likely to want to keep going with the iva. So I am now going to just do the settlement offer straight away and hope for the best. Hopefullythey will just accept the settlement offer before I send through my pension details. Is this a good idea? One question- who do I send the settlement letters to? For the iva negotiations Nat West and Halifax are going through The Insolvency Exchange, but is this the department I should write to, or to the banks directly?

[whiskeredbattleaxe]

Re: IVA full and final settlement

I am still waiting for the ccj to be set aside, the courts took ages to come back to me asking for the iva paperwork. Still, I'm sure we'll get there eventually! In the meantime I have been having even more problems with Payplan, who have just been an absolute nightmare to deal with. Until the ccj is set aside I decided to stay with payplan and have asked them to put a settlement proposal forward to my creditors. But payplan want to take £5k in fees out of that sum, which I feel is completely unreasonable when they have been so incompetent. I am now considering Debt Doctor, whom I understand are very good and can negotiate with the creditors on my behalf. Does anyone have any experience of this company?

[Amethyst]

Re: IVA full and final settlement

Payplan want £5k in fees ?

[Paule]

Re: IVA full and final settlement

Why not keep your monthly payments with payplan, and then approach all your creditors yourself,
I am sure we can help draft up spreadsheet and letter to ask/offer a settlement figure.

I presume that is what you are wanting to do, get all your debts settled at a lower sum?

PKea

[whiskeredbattleaxe]

Re: IVA full and final settlement

Yes, they want £5K in fees. I spoke to a guy called Shaun Hall at the lending centre at Nat West, who said they would accept 47p in the £. But he said this was not official as we are not supposed to negotiate as I am in the IVA. I've already written to the creditors individually, but only Goldfish has replied, saying I need to get out of the iva before they can accept my offer. Unless there is another way? I must say it would feel safer not to default from the iva, but equally with Payplan taking their cut that only leaves 36p in the £ for the creditors, which I'm not sure they'll accept (unless you think different, which would be brilliant). Without Payplan's fees that is 47p in the £ that I could offer them (my father in law can lend me £17k). Only I'm worried this may leave me at risk of bankrupcy, hence the idea to go with Debt Dr.

[Paule]

Re: IVA full and final settlement

Are Payplan managing you IVA for you?
Is that you are paying them a fee?

[whiskeredbattleaxe]

Re: IVA full and final settlement

Hi, yes Payplan are doing my iva. the fee comes out of my monthly payment, so if I was paying the iva over 60 months the creditors would get 17K out of £22 total paid over 60 months. But I've now got the opportunity through a 3rd party to pay a settlement figure of 17K, as my father in law said he would lend it to me to get out of the iva because of all the stress it has caused me. But Payplan want to take 5K out of that, so it only leaves 36p in the £ for my creditors. I'm not sure they'll accept that because in the iva they would get 46p in the £.

[Amethyst]

Re: IVA full and final settlement

Okay I'm not very up on how IVA's work and the fees involved. It doesn't seem very good that they are discouraging you from paying your creditors at a reduced settlement figure.

Am going to have to do some reading me thinks.

[whiskeredbattleaxe]

Re: IVA full and final settlement

Thanks amethyst, you're a star. I have spoken to Payplan again this morning to ask them the likelihood of them accepting 36p in the £. They said they can't tell but think it is possible as my surplus is going to reduce. I forgot to mention that, my fixed term mortgage is finishing and my mortgage goes up in June, so my surplus into the iva will reduce from 377 to 104. Which has got to be in my favour with regards to getting out of the iva. If they were to accept that would be fine, who cares who gets the money Payplan or the creditors, as long as i can clear the debt with that sum, right? Any opinions on whether 36p is realistic, would be greatly valued.

[Guest]

Re: IVA full and final settlement

Only the creditors can answer that and it does depend on how it is presented to them and by whom.

Ask yourself in whose interest is settling early and should they not accept now, what do they stand to gain or lose in the future?