F&F Help - what to offer?

[trapped77]

F&F Help - what to offer?

In my last post I explained that we have been in an IVA for the past 6 months. It is only early days but we are really struggling due to reduced and irregular income.

Anyway basically I explained that a family member has offered to help us to try and settle the debt. He is willing to lend us some money but not enough to be able to repay in full.

Originally we owed our creditors around £34k. We are paying £300 per month back over 5 years (paid in £1800 so far) plus will need to pay in for an extra year if we cannot remortgage to release any equity (which is very unlikely!) so in total we will be paying back £21,600.

We have a mortgage of approx £112k and the house has been valued at £130k which seems a bit on the high side. If it was a forced sale, price would be much lower. Not sure if that is classed as us having equity or not with the 85% rule?

Anyway, the advice I gratefully received from two iva experts on the forum was if we were to offer £15k it would stand a good chance.

I'm worried that we won't be able to offer that much and if we make a lower offer it would be declined.

Also, I'm just looking at my agreement and it states nominees fees are £5k plus the total supervisory fee exc vat is £3240 (15% of the realisations achieved). I guess my question is, could we make a lower offer by deducting the supervisory fees as we would be ending the iva early or would the IP still be entitled to this fee anyway? Sorry for all the questions i just really want to get this right first time and the sooner the better as we are finding things tough. Many thanks.

[Broke of London]

Hi! The £15k already represents a reduction for supervisor's fees but you can basically offer whatever you can afford and showing the iva is unsustainable in a new I&E will help your case. Good luck x

[trapped77]

Thank you x