i have read a few posts about f&f offers and was wondering if someone can explain to me about the whole pence in the pound. Per our IVA we are paying 45p dividend for every pound we owe.
so, in the future (if we were in the position) and we wanted to offer a f&f payment, would this be based on the total of our debts minus what we have paid over in the term of our IVA or the dividend value to what is still outstanding?
You always owe the full amount but creditors generally like to achieve as close as possible to the original dividend from a F&F. In your case, they would like to receive as close as possible to 45p/£ from your iva as a whole.
F&F depend on a number of circumstances, and the more pressing the need the more likelyhood of a smaller offer being acceptable. However, a general rule of thumb is to offer to pay over the sum anticipated at the start of your IVA (60 x monthly payment) less anything paid so far.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Foggy and I are of the same opinion. They would want to achieve as close as possible to 45p/£. However, if you can afford to return a higher dividend the they won't say no.
No, we are actually saying the same thing. BoL is correct in that you always actually owe the full amount of original debt, until the end. But the amount of the F&F is based upon what the dividend was estimated at in the IVA.
The amount of original debt is not really relevant.
Say you owed originally £50,000 -- in the IVA you agreed to pay say £500 per month .... the dividend would be 60 x 500 = £30,000.
If you had paid back 8 months (£4000) the F&F would be based upon making a payment close to £26,000. So that the creditors get what they agreed to at the start of the IVA.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
If there are specific reason for offering a full and final to end things early ie,increased expenses due to birth of child,creditorsmay be willing to accept less than they expected but your IP should always be able to guide you towards a figure creditors will find acceptable.
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
The offer should actually be based on what you can afford to pay, or what your funder is prepared to provide you with, with the intention of always trying to get the best offer to creditors. I generally advice to try and meet the original dividend, unless there are hardship reasons why a lower offer might be deemed reasonable.
