F&F proposal

[yorkie11]

Like so many on here I would just like a few views on whether my F&F proposal is likely to be accepted or doomed from the start.
My wife and I have been in our IVA since the end of 2008 with 3 years remaining and have paid £10,000 of an expected £27,000 from total debt of £70,000. This leaving £17,000 to be paid.

I became self employed last summer and just after this change my wife suffered an injury and she has been off sick since and an operation she had last month looks as if it was unsuccessful and her return to work looks unlikely.

We have in place a 6 month payment break but this is due to end next month.

We have been offered £9,000 from a relative to put forward as a Full & Final Settlement but I fear this is too low to be accepted.

I realise I need to put all this to our IP but would appreciate any views on this.

[kallis3]

Hi and welcome to the forum.

Sorry to hear about your wife, I hope she can make a full recovery.

Not sure about the offer to be honest, hopefully one of our experts can assist with that.

Speak to your IP and explain the circumstances to see what their take is on it. Do you have any assets that you might lose if you were forced to look at bankruptcy? Hopefully it won't come to that.

[winter_blues]

Unlikely I'm afraid. Creditors will expect the full dividend or very near to it. But as Jan says it worth discussing with your I.P and the option of bankruptcy too.

[Shining]

Your IP is best placed to give case specific advice, I've no idea on figures but maybe one our IP's who post can guide you with that. I hope your wife recovers soon and all goes positively for you. Welcome to the forum by the way x

[Foggy]

If it looks as though the IVA will fail and the alternative is bankruptcy, then the offer of £9000 versus practically nothing in BR looks more inviting from a creditors point of view --- they certainly won't be getting the £17000 they are expecting should the IVA go to term.

Do you have any property with equity ? ---- this will affect how the creditors will look at the situation.

[yorkie11]

Thanks for your replies so far.

We don't have any property or other assets.

[Foggy]

Thanks for your replies so far.

We don't have any property or other assets.

Naturally run it by your IP -- but I would have thought, then, £9k versus zilch would be quite tempting.

You have tried to repay the best you can -- are there ant bars to going BR ? What is the nature of your self - employment ?

[kallis3]

I hope it won't come to bankruptcy as that won't help anyone.

I hope you can get this figure accepted - the creditors will lose out otherwise.

Let us know what your IP says - make it known that this figure is only available for the full and final and if it's not accepted then you will have no option but to go bankrupt. That might sway it.

[Foggy]

No, Jan, BR isn't the preferred option, but if the creditors are given no reason to think that it's unacceptable to go BR they are more likely to agree to the F&F. Basically Yorkie has all the cards in his hand ---- "Take the £9k I am generously offering, or get nothing!". To be honest, they should be falling over themselves. If they refuse Yorkie could go BR, they will get nothing and Yorkie's relative gets to keep the money!

However, we all know what strange animals creditors are !!!!

[kallis3]

I agree Foggy - as you say though, creditors are strange beings and who knows what they are likely to say!

[yorkie11]

I just thought I'd give everyone a happy update.

Creditors meeting was held yesterday to discuss our F&F proposal, this variation estimated a didvidend of 13 pence in the pound instead of the originally estimated 22 pence in the pound and was accepted.

This news has brought so much relief to myself and my wife.

My wife is recovering from her operation but the procedure wasn't successful so she will need another one in a few months time, but at least an early end to our IVA will give us one less thing to worry about.

Thanks again for all your replies.

[kallis3]

That's excellent news Yorkie - a weight off your mind.

Sorry to hear about your wife though, hopefully this second op will be successful.

Let us know how she gets on.

[craigiewicked1]

fantastic news